Correlation Between Trimegah Securities and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both Trimegah Securities and Akr Corporindo 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 Trimegah Securities and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Securities Tbk and Akr Corporindo Tbk, you can compare the effects of market volatilities on Trimegah Securities and Akr Corporindo 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 Trimegah Securities with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Securities and Akr Corporindo.
Diversification Opportunities for Trimegah Securities and Akr Corporindo
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trimegah and Akr is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Securities Tbk and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and Trimegah Securities 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 Trimegah Securities Tbk are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of Trimegah Securities i.e., Trimegah Securities and Akr Corporindo go up and down completely randomly.
Pair Corralation between Trimegah Securities and Akr Corporindo
Assuming the 90 days trading horizon Trimegah Securities Tbk is expected to generate 1.13 times more return on investment than Akr Corporindo. However, Trimegah Securities is 1.13 times more volatile than Akr Corporindo Tbk. It trades about 0.08 of its potential returns per unit of risk. Akr Corporindo Tbk is currently generating about 0.01 per unit of risk. If you would invest 20,400 in Trimegah Securities Tbk on September 12, 2024 and sell it today you would earn a total of 16,800 from holding Trimegah Securities Tbk or generate 82.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Trimegah Securities Tbk vs. Akr Corporindo Tbk
Performance |
| Timeline |
| Trimegah Securities Tbk |
| Akr Corporindo Tbk |
Trimegah Securities and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Securities and Akr Corporindo
The main advantage of trading using opposite Trimegah Securities and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Securities position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
| Akr Corporindo vs. PT Indonesia Kendaraan | Akr Corporindo vs. Surya Toto Indonesia | Akr Corporindo vs. Mitra Pinasthika Mustika | Akr Corporindo vs. Integra Indocabinet 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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