Correlation Between Trisula International and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Trisula International and Bintang Oto 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 Bintang Oto 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 Bintang Oto Global, you can compare the effects of market volatilities on Trisula International and Bintang Oto 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 Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula International and Bintang Oto.
Diversification Opportunities for Trisula International and Bintang Oto
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trisula and Bintang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Trisula International Tbk and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global 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 Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Trisula International i.e., Trisula International and Bintang Oto go up and down completely randomly.
Pair Corralation between Trisula International and Bintang Oto
Assuming the 90 days trading horizon Trisula International Tbk is expected to generate 0.95 times more return on investment than Bintang Oto. However, Trisula International Tbk is 1.05 times less risky than Bintang Oto. It trades about -0.17 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.45 per unit of risk. If you would invest 18,100 in Trisula International Tbk on August 29, 2024 and sell it today you would lose (800.00) from holding Trisula International Tbk or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Trisula International Tbk vs. Bintang Oto Global
Performance |
| Timeline |
| Trisula International Tbk |
| Bintang Oto Global |
Trisula International and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisula International and Bintang Oto
The main advantage of trading using opposite Trisula International and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula International position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto'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 |
| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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