Correlation Between Totalindo Eka and Sumber Mas
Can any of the company-specific risk be diversified away by investing in both Totalindo Eka and Sumber Mas 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 Sumber Mas 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 Sumber Mas Konstruksi, you can compare the effects of market volatilities on Totalindo Eka and Sumber Mas 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 Sumber Mas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Totalindo Eka and Sumber Mas.
Diversification Opportunities for Totalindo Eka and Sumber Mas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Totalindo and Sumber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Totalindo Eka Persada and Sumber Mas Konstruksi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Mas Konstruksi 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 Sumber Mas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Mas Konstruksi has no effect on the direction of Totalindo Eka i.e., Totalindo Eka and Sumber Mas go up and down completely randomly.
Pair Corralation between Totalindo Eka and Sumber Mas
If you would invest 100.00 in Totalindo Eka Persada on October 23, 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 | 100.0% |
| Values | Daily Returns |
Totalindo Eka Persada vs. Sumber Mas Konstruksi
Performance |
| Timeline |
| Totalindo Eka Persada |
| Sumber Mas Konstruksi |
Totalindo Eka and Sumber Mas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Totalindo Eka and Sumber Mas
The main advantage of trading using opposite Totalindo Eka and Sumber Mas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Totalindo Eka position performs unexpectedly, Sumber Mas 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 Mas will offset losses from the drop in Sumber Mas' long position.| Totalindo Eka vs. PT Wahana Interfood | Totalindo Eka vs. Metrodata Electronics Tbk | Totalindo Eka vs. Gunawan Dianjaya Steel | Totalindo Eka vs. PT Data Sinergitama |
| Sumber Mas vs. Wahana Inti MakmurTbk | Sumber Mas vs. Sumber Tani Agung | Sumber Mas vs. Nanotech Indonesia Global | Sumber Mas vs. RMK Energy PT |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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