Correlation Between Trisula Textile and Autopedia Sukses

Can any of the company-specific risk be diversified away by investing in both Trisula Textile and Autopedia Sukses 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 Trisula Textile and Autopedia Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trisula Textile Industries and Autopedia Sukses Lestari, you can compare the effects of market volatilities on Trisula Textile and Autopedia Sukses 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 Trisula Textile with a short position of Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula Textile and Autopedia Sukses.

Diversification Opportunities for Trisula Textile and Autopedia Sukses

0.89

Correlation Coefficient

Trisula Textile  Autopedia Sukses

Very poor diversification

The 3 months correlation between Trisula and Autopedia is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Trisula Textile Industries and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari and Trisula Textile 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 Trisula Textile Industries are associated (or correlated) with Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of Trisula Textile i.e., Trisula Textile and Autopedia Sukses go up and down completely randomly.

Pair Corralation between Trisula Textile and Autopedia Sukses

Assuming the 90 days trading horizon Trisula Textile Industries is expected to generate 2.28 times more return on investment than Autopedia Sukses. However, Trisula Textile is 2.28 times more volatile than Autopedia Sukses Lestari. It trades about -0.05 of its potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about -0.24 per unit of risk. If you would invest  7,500  in Trisula Textile Industries on September 15, 2024 and sell it today you would lose (1,300) from holding Trisula Textile Industries or give up 17.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Trisula Textile Industries  vs.  Autopedia Sukses Lestari

Trisula Textile Indu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trisula Textile Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Autopedia Sukses Lestari

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Autopedia Sukses Lestari has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Trisula Textile and Autopedia Sukses

The main advantage of trading using opposite Trisula Textile and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula Textile position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.

The idea behind Trisula Textile Industries and Autopedia Sukses Lestari pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.