Correlation Between Sumber Alfaria and PT Mandiri
Can any of the company-specific risk be diversified away by investing in both Sumber Alfaria and PT Mandiri 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 Sumber Alfaria and PT Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Alfaria Trijaya and PT Mandiri Herindo, you can compare the effects of market volatilities on Sumber Alfaria and PT Mandiri 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 Sumber Alfaria with a short position of PT Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Alfaria and PT Mandiri.
Diversification Opportunities for Sumber Alfaria and PT Mandiri
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sumber and MAHA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Alfaria Trijaya and PT Mandiri Herindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mandiri Herindo and Sumber Alfaria 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 Sumber Alfaria Trijaya are associated (or correlated) with PT Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mandiri Herindo has no effect on the direction of Sumber Alfaria i.e., Sumber Alfaria and PT Mandiri go up and down completely randomly.
Pair Corralation between Sumber Alfaria and PT Mandiri
Assuming the 90 days trading horizon Sumber Alfaria Trijaya is expected to under-perform the PT Mandiri. In addition to that, Sumber Alfaria is 2.15 times more volatile than PT Mandiri Herindo. It trades about -0.32 of its total potential returns per unit of risk. PT Mandiri Herindo is currently generating about -0.14 per unit of volatility. If you would invest 17,000 in PT Mandiri Herindo on November 28, 2024 and sell it today you would lose (700.00) from holding PT Mandiri Herindo or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sumber Alfaria Trijaya vs. PT Mandiri Herindo
Performance |
| Timeline |
| Sumber Alfaria Trijaya |
| PT Mandiri Herindo |
Sumber Alfaria and PT Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Alfaria and PT Mandiri
The main advantage of trading using opposite Sumber Alfaria and PT Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Alfaria position performs unexpectedly, PT Mandiri 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 PT Mandiri will offset losses from the drop in PT Mandiri's long position.| Sumber Alfaria vs. Elang Mahkota Teknologi | Sumber Alfaria vs. Ace Hardware Indonesia | Sumber Alfaria vs. BFI Finance Indonesia | Sumber Alfaria vs. Tower Bersama Infrastructure |
| PT Mandiri vs. Arkadia Digital Media | PT Mandiri vs. Optima Prima Metal | PT Mandiri vs. Dyandra Media International | PT Mandiri vs. Smartfren Telecom Tbk |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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