Correlation Between Trias Sentosa and Yanaprima Hastapersada

Can any of the company-specific risk be diversified away by investing in both Trias Sentosa and Yanaprima Hastapersada 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 Trias Sentosa and Yanaprima Hastapersada into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trias Sentosa Tbk and Yanaprima Hastapersada Tbk, you can compare the effects of market volatilities on Trias Sentosa and Yanaprima Hastapersada 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 Trias Sentosa with a short position of Yanaprima Hastapersada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trias Sentosa and Yanaprima Hastapersada.

Diversification Opportunities for Trias Sentosa and Yanaprima Hastapersada

-0.04

Correlation Coefficient

Trias Sentosa  Yanaprima Hastapersada

Good diversification

The 3 months correlation between Trias and Yanaprima is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Trias Sentosa Tbk and Yanaprima Hastapersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanaprima Hastapersada and Trias Sentosa 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 Trias Sentosa Tbk are associated (or correlated) with Yanaprima Hastapersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanaprima Hastapersada has no effect on the direction of Trias Sentosa i.e., Trias Sentosa and Yanaprima Hastapersada go up and down completely randomly.

Pair Corralation between Trias Sentosa and Yanaprima Hastapersada

Assuming the 90 days trading horizon Trias Sentosa Tbk is expected to generate 1.84 times more return on investment than Yanaprima Hastapersada. However, Trias Sentosa is 1.84 times more volatile than Yanaprima Hastapersada Tbk. It trades about 0.18 of its potential returns per unit of risk. Yanaprima Hastapersada Tbk is currently generating about -0.38 per unit of risk. If you would invest  49,000  in Trias Sentosa Tbk on October 27, 2024 and sell it today you would earn a total of  8,500  from holding Trias Sentosa Tbk or generate 17.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Trias Sentosa Tbk  vs.  Yanaprima Hastapersada Tbk

Trias Sentosa Tbk

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trias Sentosa Tbk are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Trias Sentosa disclosed solid returns over the last few months and may actually be approaching a breakup point.

Yanaprima Hastapersada

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yanaprima Hastapersada Tbk are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Yanaprima Hastapersada may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Trias Sentosa and Yanaprima Hastapersada

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

The idea behind Trias Sentosa Tbk and Yanaprima Hastapersada Tbk 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 CEOs Directory module to screen CEOs from public companies around the world.