Correlation Between Ricky Putra and Tifico Fiber
Can any of the company-specific risk be diversified away by investing in both Ricky Putra and Tifico Fiber 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 Ricky Putra and Tifico Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ricky Putra Globalindo and Tifico Fiber Indonesia, you can compare the effects of market volatilities on Ricky Putra and Tifico Fiber 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 Ricky Putra with a short position of Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Tifico Fiber.
Diversification Opportunities for Ricky Putra and Tifico Fiber
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ricky and Tifico is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Tifico Fiber Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifico Fiber Indonesia and Ricky Putra 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 Ricky Putra Globalindo are associated (or correlated) with Tifico Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifico Fiber Indonesia has no effect on the direction of Ricky Putra i.e., Ricky Putra and Tifico Fiber go up and down completely randomly.
Pair Corralation between Ricky Putra and Tifico Fiber
Assuming the 90 days trading horizon Ricky Putra Globalindo is expected to generate 1.22 times more return on investment than Tifico Fiber. However, Ricky Putra is 1.22 times more volatile than Tifico Fiber Indonesia. It trades about -0.11 of its potential returns per unit of risk. Tifico Fiber Indonesia is currently generating about -0.23 per unit of risk. If you would invest 7,500 in Ricky Putra Globalindo on December 2, 2024 and sell it today you would lose (1,100) from holding Ricky Putra Globalindo or give up 14.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.31% |
Values | Daily Returns |
Ricky Putra Globalindo vs. Tifico Fiber Indonesia
Performance |
Timeline |
Ricky Putra Globalindo |
Tifico Fiber Indonesia |
Ricky Putra and Tifico Fiber Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ricky Putra and Tifico Fiber
The main advantage of trading using opposite Ricky Putra and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ricky Putra position performs unexpectedly, Tifico Fiber 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 Tifico Fiber will offset losses from the drop in Tifico Fiber's long position.Ricky Putra vs. Pan Brothers Tbk | Ricky Putra vs. Sunson Textile Manufacturer | Ricky Putra vs. Asia Pacific Fibers | Ricky Putra vs. Prima Alloy Steel |
Tifico Fiber vs. Sunson Textile Manufacturer | Tifico Fiber vs. Voksel Electric Tbk | Tifico Fiber vs. Ricky Putra Globalindo | Tifico Fiber vs. Supreme Cable Manufacturing |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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