Correlation Between Trimegah Karya and Wira Global
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya and Wira Global 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 Wira Global 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 Wira Global Solusi, you can compare the effects of market volatilities on Trimegah Karya and Wira Global 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 Wira Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Wira Global.
Diversification Opportunities for Trimegah Karya and Wira Global
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trimegah and Wira is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Wira Global Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wira Global Solusi 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 Wira Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wira Global Solusi has no effect on the direction of Trimegah Karya i.e., Trimegah Karya and Wira Global go up and down completely randomly.
Pair Corralation between Trimegah Karya and Wira Global
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to under-perform the Wira Global. In addition to that, Trimegah Karya is 1.23 times more volatile than Wira Global Solusi. It trades about 0.0 of its total potential returns per unit of risk. Wira Global Solusi is currently generating about 0.15 per unit of volatility. If you would invest 5,408 in Wira Global Solusi on September 1, 2024 and sell it today you would earn a total of 3,592 from holding Wira Global Solusi or generate 66.42% 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. Wira Global Solusi
Performance |
| Timeline |
| Trimegah Karya Pratama |
| Wira Global Solusi |
Trimegah Karya and Wira Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Karya and Wira Global
The main advantage of trading using opposite Trimegah Karya and Wira Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya position performs unexpectedly, Wira Global 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 Wira Global will offset losses from the drop in Wira Global's long position.| Trimegah Karya vs. Smartfren Telecom Tbk | Trimegah Karya vs. Ashmore Asset Management | Trimegah Karya vs. Tera Data Indonusa | Trimegah Karya vs. Trinitan Metals and |
| Wira Global vs. Kioson Komersial Indonesia | Wira Global vs. Sentral Mitra Informatika | Wira Global vs. Multipolar Technology Tbk | Wira Global vs. Nusantara Voucher Distribution |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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