Correlation Between Trada Maritime and Galva Technologies
Can any of the company-specific risk be diversified away by investing in both Trada Maritime and Galva Technologies 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 Galva Technologies 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 Galva Technologies Tbk, you can compare the effects of market volatilities on Trada Maritime and Galva Technologies 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 Galva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trada Maritime and Galva Technologies.
Diversification Opportunities for Trada Maritime and Galva Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trada and Galva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trada Maritime Tbk and Galva Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galva Technologies Tbk 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 Galva Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galva Technologies Tbk has no effect on the direction of Trada Maritime i.e., Trada Maritime and Galva Technologies go up and down completely randomly.
Pair Corralation between Trada Maritime and Galva Technologies
If you would invest 5,000 in Trada Maritime Tbk on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Trada Maritime Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Trada Maritime Tbk vs. Galva Technologies Tbk
Performance |
| Timeline |
| Trada Maritime Tbk |
| Galva Technologies Tbk |
Trada Maritime and Galva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trada Maritime and Galva Technologies
The main advantage of trading using opposite Trada Maritime and Galva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trada Maritime position performs unexpectedly, Galva Technologies 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 Galva Technologies will offset losses from the drop in Galva Technologies' long position.| Trada Maritime vs. Pacific Strategic Financial | Trada Maritime vs. Kedawung Setia Industrial | Trada Maritime vs. City Retail Developments | Trada Maritime vs. Lippo General Insurance |
| Galva Technologies vs. Multipolar Technology Tbk | Galva Technologies vs. Nusantara Voucher Distribution | Galva Technologies vs. Hensel Davest Indonesia | Galva Technologies vs. Anabatic Technologies 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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