Correlation Between Austindo Nusantara and Martina Berto
Can any of the company-specific risk be diversified away by investing in both Austindo Nusantara and Martina Berto 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 Austindo Nusantara and Martina Berto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austindo Nusantara Jaya and Martina Berto Tbk, you can compare the effects of market volatilities on Austindo Nusantara and Martina Berto 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 Austindo Nusantara with a short position of Martina Berto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austindo Nusantara and Martina Berto.
Diversification Opportunities for Austindo Nusantara and Martina Berto
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austindo and Martina is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Austindo Nusantara Jaya and Martina Berto Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martina Berto Tbk and Austindo Nusantara 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 Austindo Nusantara Jaya are associated (or correlated) with Martina Berto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martina Berto Tbk has no effect on the direction of Austindo Nusantara i.e., Austindo Nusantara and Martina Berto go up and down completely randomly.
Pair Corralation between Austindo Nusantara and Martina Berto
Assuming the 90 days trading horizon Austindo Nusantara Jaya is expected to generate 0.32 times more return on investment than Martina Berto. However, Austindo Nusantara Jaya is 3.08 times less risky than Martina Berto. It trades about -0.11 of its potential returns per unit of risk. Martina Berto Tbk is currently generating about -0.11 per unit of risk. If you would invest 74,500 in Austindo Nusantara Jaya on September 14, 2024 and sell it today you would lose (1,000.00) from holding Austindo Nusantara Jaya or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Austindo Nusantara Jaya vs. Martina Berto Tbk
Performance |
| Timeline |
| Austindo Nusantara Jaya |
| Martina Berto Tbk |
Austindo Nusantara and Martina Berto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austindo Nusantara and Martina Berto
The main advantage of trading using opposite Austindo Nusantara and Martina Berto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austindo Nusantara position performs unexpectedly, Martina Berto 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 Martina Berto will offset losses from the drop in Martina Berto's long position.| Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
| Martina Berto vs. Mustika Ratu Tbk | Martina Berto vs. Langgeng Makmur Industri | Martina Berto vs. Kedaung Indah Can | Martina Berto vs. Mandom Indonesia 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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