Correlation Between Trada Maritime and Adhi Karya
Can any of the company-specific risk be diversified away by investing in both Trada Maritime and Adhi Karya 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 Trada Maritime and Adhi Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trada Maritime Tbk and Adhi Karya Persero, you can compare the effects of market volatilities on Trada Maritime and Adhi Karya 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 Trada Maritime with a short position of Adhi Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trada Maritime and Adhi Karya.
Diversification Opportunities for Trada Maritime and Adhi Karya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trada and Adhi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trada Maritime Tbk and Adhi Karya Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Karya Persero and Trada Maritime 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 Trada Maritime Tbk are associated (or correlated) with Adhi Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Karya Persero has no effect on the direction of Trada Maritime i.e., Trada Maritime and Adhi Karya go up and down completely randomly.
Pair Corralation between Trada Maritime and Adhi Karya
If you would invest 22,200 in Adhi Karya Persero on October 20, 2024 and sell it today you would earn a total of 1,200 from holding Adhi Karya Persero or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Trada Maritime Tbk vs. Adhi Karya Persero
Performance |
| Timeline |
| Trada Maritime Tbk |
| Adhi Karya Persero |
Trada Maritime and Adhi Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trada Maritime and Adhi Karya
The main advantage of trading using opposite Trada Maritime and Adhi Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trada Maritime position performs unexpectedly, Adhi Karya 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 Adhi Karya will offset losses from the drop in Adhi Karya's long position.| Trada Maritime vs. Adhi Karya Persero | Trada Maritime vs. Waskita Karya Persero | Trada Maritime vs. Pembangunan Perumahan PT | Trada Maritime vs. Jasa Marga Tbk |
| Adhi Karya vs. Wijaya Karya Beton | Adhi Karya vs. Waskita Karya Persero | Adhi Karya vs. Pembangunan Perumahan PT | Adhi Karya vs. Jasa Marga 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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