Correlation Between Perintis Triniti and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Perintis Triniti and Era Mandiri 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 Perintis Triniti and Era Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perintis Triniti Properti and Era Mandiri Cemerlang, you can compare the effects of market volatilities on Perintis Triniti and Era Mandiri 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 Perintis Triniti with a short position of Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perintis Triniti and Era Mandiri.
Diversification Opportunities for Perintis Triniti and Era Mandiri
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Perintis and Era is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Perintis Triniti Properti and Era Mandiri Cemerlang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Mandiri Cemerlang and Perintis Triniti 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 Perintis Triniti Properti are associated (or correlated) with Era Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Mandiri Cemerlang has no effect on the direction of Perintis Triniti i.e., Perintis Triniti and Era Mandiri go up and down completely randomly.
Pair Corralation between Perintis Triniti and Era Mandiri
Assuming the 90 days trading horizon Perintis Triniti Properti is expected to generate 1.17 times more return on investment than Era Mandiri. However, Perintis Triniti is 1.17 times more volatile than Era Mandiri Cemerlang. It trades about -0.05 of its potential returns per unit of risk. Era Mandiri Cemerlang is currently generating about -0.64 per unit of risk. If you would invest 12,600 in Perintis Triniti Properti on September 4, 2024 and sell it today you would lose (300.00) from holding Perintis Triniti Properti or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Perintis Triniti Properti vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Perintis Triniti Properti |
| Era Mandiri Cemerlang |
Perintis Triniti and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perintis Triniti and Era Mandiri
The main advantage of trading using opposite Perintis Triniti and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perintis Triniti position performs unexpectedly, Era Mandiri 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 Era Mandiri will offset losses from the drop in Era Mandiri's long position.| Perintis Triniti vs. Pelita Samudera Shipping | Perintis Triniti vs. Transcoal Pacific Tbk | Perintis Triniti vs. Karya Bersama Anugerah | Perintis Triniti vs. Provident Agro Tbk |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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