Correlation Between Voksel Electric and Tifico Fiber

Can any of the company-specific risk be diversified away by investing in both Voksel Electric 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 Voksel Electric and Tifico Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voksel Electric Tbk and Tifico Fiber Indonesia, you can compare the effects of market volatilities on Voksel Electric 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 Voksel Electric with a short position of Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voksel Electric and Tifico Fiber.

Diversification Opportunities for Voksel Electric and Tifico Fiber

0.0

Correlation Coefficient

Voksel Electric  Tifico Fiber

Pay attention - limited upside

The 3 months correlation between Voksel and Tifico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voksel Electric Tbk 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 Voksel Electric 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 Voksel Electric Tbk 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 Voksel Electric i.e., Voksel Electric and Tifico Fiber go up and down completely randomly.

Pair Corralation between Voksel Electric and Tifico Fiber

If you would invest  24,400  in Voksel Electric Tbk on September 13, 2024 and sell it today you would lose (400.00) from holding Voksel Electric Tbk or give up 1.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Voksel Electric Tbk  vs.  Tifico Fiber Indonesia

Voksel Electric Tbk

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Voksel Electric Tbk are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Voksel Electric disclosed solid returns over the last few months and may actually be approaching a breakup point.

Tifico Fiber Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tifico Fiber Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Tifico Fiber 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 Voksel Electric and Tifico Fiber

The main advantage of trading using opposite Voksel Electric and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voksel Electric 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.

The idea behind Voksel Electric Tbk and Tifico Fiber Indonesia 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.