Correlation Between Trada Maritime and Optima Prima
Can any of the company-specific risk be diversified away by investing in both Trada Maritime and Optima Prima 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 Optima Prima 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 Optima Prima Metal, you can compare the effects of market volatilities on Trada Maritime and Optima Prima 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 Optima Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trada Maritime and Optima Prima.
Diversification Opportunities for Trada Maritime and Optima Prima
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trada and Optima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trada Maritime Tbk and Optima Prima Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optima Prima Metal 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 Optima Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optima Prima Metal has no effect on the direction of Trada Maritime i.e., Trada Maritime and Optima Prima go up and down completely randomly.
Pair Corralation between Trada Maritime and Optima Prima
If you would invest 5,000 in Trada Maritime Tbk on October 9, 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 | 100.0% |
| Values | Daily Returns |
Trada Maritime Tbk vs. Optima Prima Metal
Performance |
| Timeline |
| Trada Maritime Tbk |
| Optima Prima Metal |
Trada Maritime and Optima Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trada Maritime and Optima Prima
The main advantage of trading using opposite Trada Maritime and Optima Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trada Maritime position performs unexpectedly, Optima Prima 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 Optima Prima will offset losses from the drop in Optima Prima's long position.| Trada Maritime vs. Hero Supermarket Tbk | Trada Maritime vs. Ciptadana Asset Management | Trada Maritime vs. Alumindo Light Metal | Trada Maritime vs. Merdeka Copper Gold |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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