Correlation Between Trimegah Karya and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Trimegah Karya and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Dow Jones.
Diversification Opportunities for Trimegah Karya and Dow Jones
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trimegah and Dow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Trimegah Karya i.e., Trimegah Karya and Dow Jones go up and down completely randomly.
Pair Corralation between Trimegah Karya and Dow Jones
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to under-perform the Dow Jones. In addition to that, Trimegah Karya is 2.0 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of volatility. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Trimegah Karya Pratama vs. Dow Jones Industrial
Performance |
| Timeline |
Trimegah Karya and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Trimegah Karya Pratama
Pair trading matchups for Trimegah Karya
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Trimegah Karya and Dow Jones
The main advantage of trading using opposite Trimegah Karya and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Trimegah Karya vs. Lippo General Insurance | Trimegah Karya vs. Trinitan Metals and | Trimegah Karya vs. Prima Alloy Steel | Trimegah Karya vs. Capital Financial Indonesia |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |