Correlation Between Trias Sentosa and Impack Pratama
Can any of the company-specific risk be diversified away by investing in both Trias Sentosa and Impack Pratama 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 Trias Sentosa and Impack Pratama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trias Sentosa Tbk and Impack Pratama Industri, you can compare the effects of market volatilities on Trias Sentosa and Impack Pratama 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 Trias Sentosa with a short position of Impack Pratama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trias Sentosa and Impack Pratama.
Diversification Opportunities for Trias Sentosa and Impack Pratama
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trias and Impack is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Trias Sentosa Tbk and Impack Pratama Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impack Pratama Industri and Trias Sentosa 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 Trias Sentosa Tbk are associated (or correlated) with Impack Pratama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impack Pratama Industri has no effect on the direction of Trias Sentosa i.e., Trias Sentosa and Impack Pratama go up and down completely randomly.
Pair Corralation between Trias Sentosa and Impack Pratama
Assuming the 90 days trading horizon Trias Sentosa Tbk is expected to under-perform the Impack Pratama. In addition to that, Trias Sentosa is 1.17 times more volatile than Impack Pratama Industri. It trades about 0.0 of its total potential returns per unit of risk. Impack Pratama Industri is currently generating about 0.01 per unit of volatility. If you would invest 31,083 in Impack Pratama Industri on November 2, 2024 and sell it today you would earn a total of 917.00 from holding Impack Pratama Industri or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Trias Sentosa Tbk vs. Impack Pratama Industri
Performance |
| Timeline |
| Trias Sentosa Tbk |
| Impack Pratama Industri |
Trias Sentosa and Impack Pratama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trias Sentosa and Impack Pratama
The main advantage of trading using opposite Trias Sentosa and Impack Pratama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trias Sentosa position performs unexpectedly, Impack Pratama 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 Impack Pratama will offset losses from the drop in Impack Pratama's long position.| Trias Sentosa vs. Suparma Tbk | Trias Sentosa vs. Champion Pacific Indonesia | Trias Sentosa vs. Indo Acidatama Tbk | Trias Sentosa vs. Unggul Indah Cahaya |
| Impack Pratama vs. Medikaloka Hermina PT | Impack Pratama vs. Lotte Chemical Titan | Impack Pratama vs. Mark Dynamics Indonesia | Impack Pratama vs. Garudafood Putra Putri |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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