Correlation Between Trimegah Securities and Bank Mega
Can any of the company-specific risk be diversified away by investing in both Trimegah Securities and Bank Mega 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 Bank Mega 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 Bank Mega Tbk, you can compare the effects of market volatilities on Trimegah Securities and Bank Mega 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 Bank Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Securities and Bank Mega.
Diversification Opportunities for Trimegah Securities and Bank Mega
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trimegah and Bank is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Securities Tbk and Bank Mega Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mega 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 Bank Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mega Tbk has no effect on the direction of Trimegah Securities i.e., Trimegah Securities and Bank Mega go up and down completely randomly.
Pair Corralation between Trimegah Securities and Bank Mega
Assuming the 90 days trading horizon Trimegah Securities Tbk is expected to generate 3.5 times more return on investment than Bank Mega. However, Trimegah Securities is 3.5 times more volatile than Bank Mega Tbk. It trades about 0.23 of its potential returns per unit of risk. Bank Mega Tbk is currently generating about -0.14 per unit of risk. If you would invest 29,400 in Trimegah Securities Tbk on August 31, 2024 and sell it today you would earn a total of 4,600 from holding Trimegah Securities Tbk or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Securities Tbk vs. Bank Mega Tbk
Performance |
| Timeline |
| Trimegah Securities Tbk |
| Bank Mega Tbk |
Trimegah Securities and Bank Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Securities and Bank Mega
The main advantage of trading using opposite Trimegah Securities and Bank Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Securities position performs unexpectedly, Bank Mega 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 Bank Mega will offset losses from the drop in Bank Mega'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 |
| Bank Mega vs. Bank Ocbc Nisp | Bank Mega vs. Bank Mayapada Internasional | Bank Mega vs. Bank Permata Tbk | Bank Mega vs. Bank Pan Indonesia |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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