Correlation Between Trimegah Securities and City Retail
Can any of the company-specific risk be diversified away by investing in both Trimegah Securities and City Retail 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 City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Trimegah Securities and City Retail 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 City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Securities and City Retail.
Diversification Opportunities for Trimegah Securities and City Retail
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trimegah and City is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Securities Tbk and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments 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 City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Trimegah Securities i.e., Trimegah Securities and City Retail go up and down completely randomly.
Pair Corralation between Trimegah Securities and City Retail
Assuming the 90 days trading horizon Trimegah Securities Tbk is expected to generate 4.54 times more return on investment than City Retail. However, Trimegah Securities is 4.54 times more volatile than City Retail Developments. It trades about 0.08 of its potential returns per unit of risk. City Retail Developments is currently generating about -0.04 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 | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Trimegah Securities Tbk vs. City Retail Developments
Performance |
| Timeline |
| Trimegah Securities Tbk |
| City Retail Developments |
Trimegah Securities and City Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Securities and City Retail
The main advantage of trading using opposite Trimegah Securities and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Securities position performs unexpectedly, City Retail 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 City Retail will offset losses from the drop in City Retail'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 |
| City Retail vs. Ciputra Development Tbk | City Retail vs. Bumi Serpong Damai | City Retail vs. Alam Sutera Realty | City Retail vs. Lippo Karawaci 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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