Correlation Between Totalindo Eka and Pratama Widya
Can any of the company-specific risk be diversified away by investing in both Totalindo Eka and Pratama Widya 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 Pratama Widya 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 Pratama Widya Tbk, you can compare the effects of market volatilities on Totalindo Eka and Pratama Widya 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 Pratama Widya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Totalindo Eka and Pratama Widya.
Diversification Opportunities for Totalindo Eka and Pratama Widya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Totalindo and Pratama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Totalindo Eka Persada and Pratama Widya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pratama Widya 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 Pratama Widya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pratama Widya Tbk has no effect on the direction of Totalindo Eka i.e., Totalindo Eka and Pratama Widya go up and down completely randomly.
Pair Corralation between Totalindo Eka and Pratama Widya
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. Pratama Widya Tbk
Performance |
| Timeline |
| Totalindo Eka Persada |
| Pratama Widya Tbk |
Totalindo Eka and Pratama Widya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Totalindo Eka and Pratama Widya
The main advantage of trading using opposite Totalindo Eka and Pratama Widya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Totalindo Eka position performs unexpectedly, Pratama Widya 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 Pratama Widya will offset losses from the drop in Pratama Widya'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 |
| Pratama Widya vs. Kencana Energi Lestari | Pratama Widya vs. Pelita Samudera Shipping | Pratama Widya vs. Paramita Bangun Sarana | Pratama Widya vs. Dana Brata Luhur |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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