Correlation Between Maming Enam and Pacific Strategic
Can any of the company-specific risk be diversified away by investing in both Maming Enam and Pacific Strategic 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 Maming Enam and Pacific Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maming Enam Sembilan and Pacific Strategic Financial, you can compare the effects of market volatilities on Maming Enam and Pacific Strategic 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 Maming Enam with a short position of Pacific Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maming Enam and Pacific Strategic.
Diversification Opportunities for Maming Enam and Pacific Strategic
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maming and Pacific is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Maming Enam Sembilan and Pacific Strategic Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Strategic and Maming Enam 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 Maming Enam Sembilan are associated (or correlated) with Pacific Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Strategic has no effect on the direction of Maming Enam i.e., Maming Enam and Pacific Strategic go up and down completely randomly.
Pair Corralation between Maming Enam and Pacific Strategic
Assuming the 90 days trading horizon Maming Enam Sembilan is expected to under-perform the Pacific Strategic. In addition to that, Maming Enam is 5.02 times more volatile than Pacific Strategic Financial. It trades about -0.2 of its total potential returns per unit of risk. Pacific Strategic Financial is currently generating about -0.32 per unit of volatility. If you would invest 108,500 in Pacific Strategic Financial on August 30, 2024 and sell it today you would lose (7,000) from holding Pacific Strategic Financial or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maming Enam Sembilan vs. Pacific Strategic Financial
Performance |
| Timeline |
| Maming Enam Sembilan |
| Pacific Strategic |
Maming Enam and Pacific Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maming Enam and Pacific Strategic
The main advantage of trading using opposite Maming Enam and Pacific Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maming Enam position performs unexpectedly, Pacific Strategic 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 Pacific Strategic will offset losses from the drop in Pacific Strategic's long position.| Maming Enam vs. Indosterling Technomedia Tbk | Maming Enam vs. Ciptadana Asset Management | Maming Enam vs. Enseval Putra Megatrading | Maming Enam vs. Victoria Insurance Tbk |
| Pacific Strategic vs. Bank Cimb Niaga | Pacific Strategic vs. Indosat Tbk | Pacific Strategic vs. Astra Agro Lestari | Pacific Strategic vs. Indocement Tunggal Prakarsa |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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