Correlation Between Aneka Gas and Triputra Agro
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Triputra Agro 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 Aneka Gas and Triputra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Gas Industri and Triputra Agro Persada, you can compare the effects of market volatilities on Aneka Gas and Triputra Agro 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 Aneka Gas with a short position of Triputra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Triputra Agro.
Diversification Opportunities for Aneka Gas and Triputra Agro
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and Triputra is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Triputra Agro Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triputra Agro Persada and Aneka Gas 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 Aneka Gas Industri are associated (or correlated) with Triputra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triputra Agro Persada has no effect on the direction of Aneka Gas i.e., Aneka Gas and Triputra Agro go up and down completely randomly.
Pair Corralation between Aneka Gas and Triputra Agro
Assuming the 90 days trading horizon Aneka Gas Industri is expected to under-perform the Triputra Agro. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Gas Industri is 2.84 times less risky than Triputra Agro. The stock trades about -0.23 of its potential returns per unit of risk. The Triputra Agro Persada is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 74,127 in Triputra Agro Persada on September 14, 2024 and sell it today you would earn a total of 5,873 from holding Triputra Agro Persada or generate 7.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aneka Gas Industri vs. Triputra Agro Persada
Performance |
Timeline |
Aneka Gas Industri |
Triputra Agro Persada |
Aneka Gas and Triputra Agro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Gas and Triputra Agro
The main advantage of trading using opposite Aneka Gas and Triputra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Triputra Agro 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 Triputra Agro will offset losses from the drop in Triputra Agro's long position.Aneka Gas vs. Kedaung Indah Can | Aneka Gas vs. Kabelindo Murni Tbk | Aneka Gas vs. Champion Pacific Indonesia | Aneka Gas vs. Bhuwanatala Indah Permai |
Triputra Agro vs. Mahkota Group Tbk | Triputra Agro vs. Palma Serasih PT | Triputra Agro vs. Cisadane Sawit Raya | Triputra Agro vs. Diamond Food 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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