Correlation Between Trimegah Karya and Hoffmen Cleanindo
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya and Hoffmen Cleanindo 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 Hoffmen Cleanindo 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 Hoffmen Cleanindo, you can compare the effects of market volatilities on Trimegah Karya and Hoffmen Cleanindo 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 Hoffmen Cleanindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Hoffmen Cleanindo.
Diversification Opportunities for Trimegah Karya and Hoffmen Cleanindo
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trimegah and Hoffmen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Hoffmen Cleanindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoffmen Cleanindo 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 Hoffmen Cleanindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoffmen Cleanindo has no effect on the direction of Trimegah Karya i.e., Trimegah Karya and Hoffmen Cleanindo go up and down completely randomly.
Pair Corralation between Trimegah Karya and Hoffmen Cleanindo
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to under-perform the Hoffmen Cleanindo. In addition to that, Trimegah Karya is 1.11 times more volatile than Hoffmen Cleanindo. It trades about -0.04 of its total potential returns per unit of risk. Hoffmen Cleanindo is currently generating about 0.01 per unit of volatility. If you would invest 17,000 in Hoffmen Cleanindo on September 12, 2024 and sell it today you would lose (1,900) from holding Hoffmen Cleanindo or give up 11.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Karya Pratama vs. Hoffmen Cleanindo
Performance |
| Timeline |
| Trimegah Karya Pratama |
| Hoffmen Cleanindo |
Trimegah Karya and Hoffmen Cleanindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Karya and Hoffmen Cleanindo
The main advantage of trading using opposite Trimegah Karya and Hoffmen Cleanindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya position performs unexpectedly, Hoffmen Cleanindo 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 Hoffmen Cleanindo will offset losses from the drop in Hoffmen Cleanindo's long position.| Trimegah Karya vs. Hoffmen Cleanindo | Trimegah Karya vs. Communication Cable Systems | Trimegah Karya vs. Victoria Insurance Tbk | Trimegah Karya vs. Indonesian Tobacco Tbk |
| Hoffmen Cleanindo vs. Bank Central Asia | Hoffmen Cleanindo vs. Bank Rakyat Indonesia | Hoffmen Cleanindo vs. Bayan Resources Tbk | Hoffmen Cleanindo vs. Bank Mandiri Persero |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |