Correlation Between Perintis Triniti and Karya Bersama

Can any of the company-specific risk be diversified away by investing in both Perintis Triniti and Karya Bersama 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 Perintis Triniti and Karya Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Perintis Triniti Properti and Karya Bersama Anugerah, you can compare the effects of market volatilities on Perintis Triniti and Karya Bersama 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 Perintis Triniti with a short position of Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perintis Triniti and Karya Bersama.

Diversification Opportunities for Perintis Triniti and Karya Bersama

-0.45

Correlation Coefficient

Perintis Triniti  Karya Bersama

Very good diversification

The 3 months correlation between Perintis and Karya is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Perintis Triniti Properti and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah and Perintis Triniti 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 Perintis Triniti Properti are associated (or correlated) with Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Perintis Triniti i.e., Perintis Triniti and Karya Bersama go up and down completely randomly.

Pair Corralation between Perintis Triniti and Karya Bersama

Assuming the 90 days trading horizon Perintis Triniti Properti is expected to under-perform the Karya Bersama. But the stock apears to be less risky and, when comparing its historical volatility, Perintis Triniti Properti is 1.86 times less risky than Karya Bersama. The stock trades about -0.06 of its potential returns per unit of risk. The Karya Bersama Anugerah is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  2,200  in Karya Bersama Anugerah on October 9, 2024 and sell it today you would lose (200.00) from holding Karya Bersama Anugerah or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Perintis Triniti Properti  vs.  Karya Bersama Anugerah

Perintis Triniti Properti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perintis Triniti Properti has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Karya Bersama Anugerah

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Karya Bersama Anugerah has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Karya Bersama is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Perintis Triniti and Karya Bersama

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

The idea behind Perintis Triniti Properti and Karya Bersama Anugerah 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.