Correlation Between Trias Sentosa and Slj Global
Can any of the company-specific risk be diversified away by investing in both Trias Sentosa and Slj Global 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 Slj Global 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 Slj Global Tbk, you can compare the effects of market volatilities on Trias Sentosa and Slj Global 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 Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trias Sentosa and Slj Global.
Diversification Opportunities for Trias Sentosa and Slj Global
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trias and Slj is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Trias Sentosa Tbk and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global Tbk 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 Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of Trias Sentosa i.e., Trias Sentosa and Slj Global go up and down completely randomly.
Pair Corralation between Trias Sentosa and Slj Global
Assuming the 90 days trading horizon Trias Sentosa Tbk is expected to generate 0.87 times more return on investment than Slj Global. However, Trias Sentosa Tbk is 1.15 times less risky than Slj Global. It trades about 0.02 of its potential returns per unit of risk. Slj Global Tbk is currently generating about -0.19 per unit of risk. If you would invest 49,600 in Trias Sentosa Tbk on August 28, 2024 and sell it today you would earn a total of 400.00 from holding Trias Sentosa Tbk or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trias Sentosa Tbk vs. Slj Global Tbk
Performance |
| Timeline |
| Trias Sentosa Tbk |
| Slj Global Tbk |
Trias Sentosa and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trias Sentosa and Slj Global
The main advantage of trading using opposite Trias Sentosa and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trias Sentosa position performs unexpectedly, Slj Global 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 Slj Global will offset losses from the drop in Slj Global's long position.| Trias Sentosa vs. Kedaung Indah Can | Trias Sentosa vs. Langgeng Makmur Industri | Trias Sentosa vs. Kabelindo Murni Tbk | Trias Sentosa vs. Mustika Ratu Tbk |
| Slj Global vs. Kedaung Indah Can | Slj Global vs. Langgeng Makmur Industri | Slj Global vs. Kabelindo Murni Tbk | Slj Global vs. Mustika Ratu Tbk |
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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