Correlation Between Totalindo Eka and PP Presisi
Can any of the company-specific risk be diversified away by investing in both Totalindo Eka and PP Presisi 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 Totalindo Eka and PP Presisi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Totalindo Eka Persada and PP Presisi Tbk, you can compare the effects of market volatilities on Totalindo Eka and PP Presisi 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 Totalindo Eka with a short position of PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Totalindo Eka and PP Presisi.
Diversification Opportunities for Totalindo Eka and PP Presisi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Totalindo and PPRE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Totalindo Eka Persada and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi Tbk and Totalindo Eka 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 Totalindo Eka Persada are associated (or correlated) with PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of Totalindo Eka i.e., Totalindo Eka and PP Presisi go up and down completely randomly.
Pair Corralation between Totalindo Eka and PP Presisi
If you would invest 100.00 in Totalindo Eka Persada on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Totalindo Eka Persada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Totalindo Eka Persada vs. PP Presisi Tbk
Performance |
| Timeline |
| Totalindo Eka Persada |
| PP Presisi Tbk |
Totalindo Eka and PP Presisi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Totalindo Eka and PP Presisi
The main advantage of trading using opposite Totalindo Eka and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Totalindo Eka position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi's long position.| Totalindo Eka vs. Metro Healthcare Indonesia | Totalindo Eka vs. Siloam International Hospitals | Totalindo Eka vs. Indo Acidatama Tbk | Totalindo Eka vs. PT Data Sinergitama |
| PP Presisi vs. Wijaya Karya Bangunan | PP Presisi vs. PP Properti Tbk | PP Presisi vs. Wijaya Karya Beton | PP Presisi vs. Soechi Lines Tbk |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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