Correlation Between Trimegah Karya and Nusantara Voucher
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya and Nusantara Voucher 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 Trimegah Karya and Nusantara Voucher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Karya Pratama and Nusantara Voucher Distribution, you can compare the effects of market volatilities on Trimegah Karya and Nusantara Voucher 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 Trimegah Karya with a short position of Nusantara Voucher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Nusantara Voucher.
Diversification Opportunities for Trimegah Karya and Nusantara Voucher
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trimegah and Nusantara is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Nusantara Voucher Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Voucher and Trimegah Karya 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 Trimegah Karya Pratama are associated (or correlated) with Nusantara Voucher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Voucher has no effect on the direction of Trimegah Karya i.e., Trimegah Karya and Nusantara Voucher go up and down completely randomly.
Pair Corralation between Trimegah Karya and Nusantara Voucher
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to under-perform the Nusantara Voucher. But the stock apears to be less risky and, when comparing its historical volatility, Trimegah Karya Pratama is 2.32 times less risky than Nusantara Voucher. The stock trades about -0.04 of its potential returns per unit of risk. The Nusantara Voucher Distribution is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,400 in Nusantara Voucher Distribution on September 3, 2024 and sell it today you would earn a total of 7,700 from holding Nusantara Voucher Distribution or generate 81.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Karya Pratama vs. Nusantara Voucher Distribution
Performance |
| Timeline |
| Trimegah Karya Pratama |
| Nusantara Voucher |
Trimegah Karya and Nusantara Voucher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Karya and Nusantara Voucher
The main advantage of trading using opposite Trimegah Karya and Nusantara Voucher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya position performs unexpectedly, Nusantara Voucher 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 Nusantara Voucher will offset losses from the drop in Nusantara Voucher's long position.| Trimegah Karya vs. Anabatic Technologies Tbk | Trimegah Karya vs. PT Hatten Bali | Trimegah Karya vs. Envy Technologies Indonesia | Trimegah Karya vs. Enseval Putra Megatrading |
| Nusantara Voucher vs. M Cash Integrasi | Nusantara Voucher vs. NFC Indonesia PT | Nusantara Voucher vs. Digital Mediatama Maxima | Nusantara Voucher vs. Kioson Komersial Indonesia |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |