Correlation Between Transkon Jaya and Superkrane Mitra
Can any of the company-specific risk be diversified away by investing in both Transkon Jaya and Superkrane Mitra 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 Transkon Jaya and Superkrane Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transkon Jaya Pt and Superkrane Mitra Utama, you can compare the effects of market volatilities on Transkon Jaya and Superkrane Mitra 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 Transkon Jaya with a short position of Superkrane Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transkon Jaya and Superkrane Mitra.
Diversification Opportunities for Transkon Jaya and Superkrane Mitra
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transkon and Superkrane is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Transkon Jaya Pt and Superkrane Mitra Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superkrane Mitra Utama and Transkon Jaya 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 Transkon Jaya Pt are associated (or correlated) with Superkrane Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superkrane Mitra Utama has no effect on the direction of Transkon Jaya i.e., Transkon Jaya and Superkrane Mitra go up and down completely randomly.
Pair Corralation between Transkon Jaya and Superkrane Mitra
Assuming the 90 days trading horizon Transkon Jaya is expected to generate 1.97 times less return on investment than Superkrane Mitra. But when comparing it to its historical volatility, Transkon Jaya Pt is 2.05 times less risky than Superkrane Mitra. It trades about 0.09 of its potential returns per unit of risk. Superkrane Mitra Utama is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 27,211 in Superkrane Mitra Utama on September 3, 2024 and sell it today you would earn a total of 9,389 from holding Superkrane Mitra Utama or generate 34.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transkon Jaya Pt vs. Superkrane Mitra Utama
Performance |
| Timeline |
| Transkon Jaya Pt |
| Superkrane Mitra Utama |
Transkon Jaya and Superkrane Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transkon Jaya and Superkrane Mitra
The main advantage of trading using opposite Transkon Jaya and Superkrane Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transkon Jaya position performs unexpectedly, Superkrane Mitra 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 Superkrane Mitra will offset losses from the drop in Superkrane Mitra's long position.| Transkon Jaya vs. Pelayaran Nelly Dwi | Transkon Jaya vs. Guna Timur Raya | Transkon Jaya vs. Batavia Prosperindo Trans | Transkon Jaya vs. PT Trimuda Nuansa |
| Superkrane Mitra vs. Garudafood Putra Putri | Superkrane Mitra vs. PT Surya Pertiwi | Superkrane Mitra vs. MD Pictures Tbk | Superkrane Mitra vs. PT Mulia Industrindo |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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