Correlation Between Trisula International and Trisula Textile
Can any of the company-specific risk be diversified away by investing in both Trisula International and Trisula Textile 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 Trisula International and Trisula Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trisula International Tbk and Trisula Textile Industries, you can compare the effects of market volatilities on Trisula International and Trisula Textile 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 Trisula International with a short position of Trisula Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula International and Trisula Textile.
Diversification Opportunities for Trisula International and Trisula Textile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Trisula and Trisula is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Trisula International Tbk and Trisula Textile Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula Textile Indu and Trisula International 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 Trisula International Tbk are associated (or correlated) with Trisula Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula Textile Indu has no effect on the direction of Trisula International i.e., Trisula International and Trisula Textile go up and down completely randomly.
Pair Corralation between Trisula International and Trisula Textile
Assuming the 90 days trading horizon Trisula International Tbk is expected to generate 0.76 times more return on investment than Trisula Textile. However, Trisula International Tbk is 1.32 times less risky than Trisula Textile. It trades about -0.03 of its potential returns per unit of risk. Trisula Textile Industries is currently generating about -0.11 per unit of risk. If you would invest 16,900 in Trisula International Tbk on November 4, 2024 and sell it today you would lose (200.00) from holding Trisula International Tbk or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trisula International Tbk vs. Trisula Textile Industries
Performance |
| Timeline |
| Trisula International Tbk |
| Trisula Textile Indu |
Trisula International and Trisula Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisula International and Trisula Textile
The main advantage of trading using opposite Trisula International and Trisula Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula International position performs unexpectedly, Trisula Textile 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 Trisula Textile will offset losses from the drop in Trisula Textile's long position.| Trisula International vs. PT Buana Artha | Trisula International vs. Tifico Fiber Indonesia | Trisula International vs. Voksel Electric Tbk | Trisula International vs. Sunson Textile Manufacturer |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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