Correlation Between Perintis Triniti and Repower Asia
Can any of the company-specific risk be diversified away by investing in both Perintis Triniti and Repower Asia 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 Repower Asia 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 Repower Asia Indonesia, you can compare the effects of market volatilities on Perintis Triniti and Repower Asia 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 Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perintis Triniti and Repower Asia.
Diversification Opportunities for Perintis Triniti and Repower Asia
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perintis and Repower is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Perintis Triniti Properti and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia 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 Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of Perintis Triniti i.e., Perintis Triniti and Repower Asia go up and down completely randomly.
Pair Corralation between Perintis Triniti and Repower Asia
Assuming the 90 days trading horizon Perintis Triniti Properti is expected to under-perform the Repower Asia. But the stock apears to be less risky and, when comparing its historical volatility, Perintis Triniti Properti is 4.42 times less risky than Repower Asia. The stock trades about -0.06 of its potential returns per unit of risk. The Repower Asia Indonesia is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Repower Asia Indonesia on November 3, 2024 and sell it today you would earn a total of 300.00 from holding Repower Asia Indonesia or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perintis Triniti Properti vs. Repower Asia Indonesia
Performance |
| Timeline |
| Perintis Triniti Properti |
| Repower Asia Indonesia |
Perintis Triniti and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perintis Triniti and Repower Asia
The main advantage of trading using opposite Perintis Triniti and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perintis Triniti position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia'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 |
| Repower Asia vs. FKS Food Sejahtera | Repower Asia vs. PT Charlie Hospital | Repower Asia vs. Sentra Food Indonesia | Repower Asia vs. PT Wahana Interfood |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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