Correlation Between Pacific Strategic and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Pacific Strategic and Maming Enam 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 Pacific Strategic and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Strategic Financial and Maming Enam Sembilan, you can compare the effects of market volatilities on Pacific Strategic and Maming Enam 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 Pacific Strategic with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Strategic and Maming Enam.
Diversification Opportunities for Pacific Strategic and Maming Enam
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pacific and Maming is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Strategic Financial and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Pacific Strategic 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 Pacific Strategic Financial are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Pacific Strategic i.e., Pacific Strategic and Maming Enam go up and down completely randomly.
Pair Corralation between Pacific Strategic and Maming Enam
Assuming the 90 days trading horizon Pacific Strategic Financial is expected to under-perform the Maming Enam. But the stock apears to be less risky and, when comparing its historical volatility, Pacific Strategic Financial is 6.29 times less risky than Maming Enam. The stock trades about -0.03 of its potential returns per unit of risk. The Maming Enam Sembilan is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Maming Enam Sembilan on August 27, 2024 and sell it today you would earn a total of 26,400 from holding Maming Enam Sembilan or generate 185.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Strategic Financial vs. Maming Enam Sembilan
Performance |
| Timeline |
| Pacific Strategic |
| Maming Enam Sembilan |
Pacific Strategic and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Strategic and Maming Enam
The main advantage of trading using opposite Pacific Strategic and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Strategic position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Pacific Strategic vs. Paninvest Tbk | Pacific Strategic vs. Wahana Ottomitra Multiartha | Pacific Strategic vs. Lenox Pasifik Investama |
| Maming Enam vs. Lion Metal Works | Maming Enam vs. Diamond Food Indonesia | Maming Enam vs. Trinitan Metals and | Maming Enam vs. Garuda Metalindo 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |