Correlation Between Asahimas Flat and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Mega Manunggal 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 Asahimas Flat and Mega Manunggal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asahimas Flat Glass and Mega Manunggal Property, you can compare the effects of market volatilities on Asahimas Flat and Mega Manunggal 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 Asahimas Flat with a short position of Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Mega Manunggal.
Diversification Opportunities for Asahimas Flat and Mega Manunggal
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asahimas and Mega is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property and Asahimas Flat 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 Asahimas Flat Glass are associated (or correlated) with Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Mega Manunggal go up and down completely randomly.
Pair Corralation between Asahimas Flat and Mega Manunggal
Assuming the 90 days trading horizon Asahimas Flat Glass is expected to under-perform the Mega Manunggal. But the stock apears to be less risky and, when comparing its historical volatility, Asahimas Flat Glass is 2.39 times less risky than Mega Manunggal. The stock trades about -0.08 of its potential returns per unit of risk. The Mega Manunggal Property is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 31,000 in Mega Manunggal Property on September 2, 2024 and sell it today you would earn a total of 17,800 from holding Mega Manunggal Property or generate 57.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asahimas Flat Glass vs. Mega Manunggal Property
Performance |
| Timeline |
| Asahimas Flat Glass |
| Mega Manunggal Property |
Asahimas Flat and Mega Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asahimas Flat and Mega Manunggal
The main advantage of trading using opposite Asahimas Flat and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal's long position.| Asahimas Flat vs. Matahari Department Store | Asahimas Flat vs. Multi Medika Internasional | Asahimas Flat vs. Visi Media Asia | Asahimas Flat vs. Bayan Resources Tbk |
| Mega Manunggal vs. Lippo Cikarang Tbk | Mega Manunggal vs. Lippo Karawaci Tbk | Mega Manunggal vs. Mitra Pinasthika Mustika | Mega Manunggal vs. Jakarta Int Hotels |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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