Correlation Between Trimegah Karya and Surya Biru
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya and Surya Biru 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 Surya Biru 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 Surya Biru Murni, you can compare the effects of market volatilities on Trimegah Karya and Surya Biru 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 Surya Biru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Surya Biru.
Diversification Opportunities for Trimegah Karya and Surya Biru
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trimegah and Surya is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Surya Biru Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Biru Murni 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 Surya Biru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Biru Murni has no effect on the direction of Trimegah Karya i.e., Trimegah Karya and Surya Biru go up and down completely randomly.
Pair Corralation between Trimegah Karya and Surya Biru
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to generate 2.95 times more return on investment than Surya Biru. However, Trimegah Karya is 2.95 times more volatile than Surya Biru Murni. It trades about 0.02 of its potential returns per unit of risk. Surya Biru Murni is currently generating about 0.01 per unit of risk. If you would invest 6,500 in Trimegah Karya Pratama on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Trimegah Karya Pratama or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Trimegah Karya Pratama vs. Surya Biru Murni
Performance |
Timeline |
Trimegah Karya Pratama |
Surya Biru Murni |
Trimegah Karya and Surya Biru Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trimegah Karya and Surya Biru
The main advantage of trading using opposite Trimegah Karya and Surya Biru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya position performs unexpectedly, Surya Biru 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 Surya Biru will offset losses from the drop in Surya Biru's long position.Trimegah Karya vs. Dyandra Media International | Trimegah Karya vs. Global Mediacom Tbk | Trimegah Karya vs. Sentra Food Indonesia | Trimegah Karya vs. Visi Media Asia |
Surya Biru vs. Indo Oil Perkasa | Surya Biru vs. Archi Indonesia Tbk | Surya Biru vs. Nusa Palapa Gemilang | Surya Biru vs. Obm Drilchem PT |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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