Correlation Between Trimegah Karya and Anabatic Technologies

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

By analyzing existing cross correlation between Trimegah Karya Pratama and Anabatic Technologies Tbk, you can compare the effects of market volatilities on Trimegah Karya and Anabatic Technologies 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 Trimegah Karya with a short position of Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Anabatic Technologies.

Diversification Opportunities for Trimegah Karya and Anabatic Technologies

0.24

Correlation Coefficient

Trimegah Karya  Anabatic Technologies

Modest diversification

The 3 months correlation between Trimegah and Anabatic is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk and Trimegah Karya 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 Trimegah Karya Pratama are associated (or correlated) with Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Trimegah Karya i.e., Trimegah Karya and Anabatic Technologies go up and down completely randomly.

Pair Corralation between Trimegah Karya and Anabatic Technologies

Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to generate 2.76 times more return on investment than Anabatic Technologies. However, Trimegah Karya is 2.76 times more volatile than Anabatic Technologies Tbk. It trades about -0.05 of its potential returns per unit of risk. Anabatic Technologies Tbk is currently generating about -0.21 per unit of risk. If you would invest  7,300  in Trimegah Karya Pratama on September 12, 2024 and sell it today you would lose (900.00) from holding Trimegah Karya Pratama or give up 12.33% of portfolio value over 90 days.

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

Trimegah Karya Pratama  vs.  Anabatic Technologies Tbk

Trimegah Karya Pratama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trimegah Karya Pratama 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.

Anabatic Technologies Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anabatic Technologies Tbk 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 Trimegah Karya and Anabatic Technologies

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

The idea behind Trimegah Karya Pratama and Anabatic Technologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.