Correlation Between Tempo Scan and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Tempo Scan and Mitra Keluarga 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 Tempo Scan and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tempo Scan Pacific and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Tempo Scan and Mitra Keluarga 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 Tempo Scan with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tempo Scan and Mitra Keluarga.
Diversification Opportunities for Tempo Scan and Mitra Keluarga
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tempo and Mitra is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tempo Scan Pacific and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and Tempo Scan 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 Tempo Scan Pacific are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Tempo Scan i.e., Tempo Scan and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Tempo Scan and Mitra Keluarga
Assuming the 90 days trading horizon Tempo Scan Pacific is expected to generate 0.9 times more return on investment than Mitra Keluarga. However, Tempo Scan Pacific is 1.11 times less risky than Mitra Keluarga. It trades about 0.09 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about 0.0 per unit of risk. If you would invest 119,975 in Tempo Scan Pacific on September 4, 2024 and sell it today you would earn a total of 130,025 from holding Tempo Scan Pacific or generate 108.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tempo Scan Pacific vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Tempo Scan Pacific |
| Mitra Keluarga Karyasehat |
Tempo Scan and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tempo Scan and Mitra Keluarga
The main advantage of trading using opposite Tempo Scan and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tempo Scan position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Tempo Scan vs. Total Bangun Persada | Tempo Scan vs. Tunas Baru Lampung | Tempo Scan vs. Solusi Bangun Indonesia | Tempo Scan vs. Ramayana Lestari Sentosa |
| Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Mitra Pinasthika Mustika | Mitra Keluarga vs. Jakarta Int Hotels |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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