Correlation Between TBS Energi and Sumber Global
Can any of the company-specific risk be diversified away by investing in both TBS Energi and Sumber Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TBS Energi and Sumber Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TBS Energi Utama and Sumber Global Energy, you can compare the effects of market volatilities on TBS Energi and Sumber Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TBS Energi with a short position of Sumber Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBS Energi and Sumber Global.
Diversification Opportunities for TBS Energi and Sumber Global
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TBS and Sumber is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding TBS Energi Utama and Sumber Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Global Energy and TBS Energi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TBS Energi Utama are associated (or correlated) with Sumber Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Global Energy has no effect on the direction of TBS Energi i.e., TBS Energi and Sumber Global go up and down completely randomly.
Pair Corralation between TBS Energi and Sumber Global
Assuming the 90 days trading horizon TBS Energi Utama is expected to under-perform the Sumber Global. But the stock apears to be less risky and, when comparing its historical volatility, TBS Energi Utama is 13.0 times less risky than Sumber Global. The stock trades about 0.0 of its potential returns per unit of risk. The Sumber Global Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17,310 in Sumber Global Energy on August 26, 2024 and sell it today you would earn a total of 23,090 from holding Sumber Global Energy or generate 133.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBS Energi Utama vs. Sumber Global Energy
Performance |
| Timeline |
| TBS Energi Utama |
| Sumber Global Energy |
TBS Energi and Sumber Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBS Energi and Sumber Global
The main advantage of trading using opposite TBS Energi and Sumber Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBS Energi position performs unexpectedly, Sumber Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sumber Global will offset losses from the drop in Sumber Global's long position.| TBS Energi vs. Petrosea Tbk | TBS Energi vs. Harum Energy Tbk | TBS Energi vs. Perdana Karya Perkasa | TBS Energi vs. Samindo Resources Tbk |
| Sumber Global vs. Golden Eagle Energy | Sumber Global vs. Baramulti Suksessarana Tbk | Sumber Global vs. TBS Energi Utama | Sumber Global vs. Resource Alam Indonesia |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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