Correlation Between PT Jobubu and PT Mandiri
Can any of the company-specific risk be diversified away by investing in both PT Jobubu 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 PT Jobubu and PT Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jobubu Jarum and PT Mandiri Herindo, you can compare the effects of market volatilities on PT Jobubu 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 PT Jobubu with a short position of PT Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and PT Mandiri.
Diversification Opportunities for PT Jobubu and PT Mandiri
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BEER and MAHA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum 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 PT Jobubu 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 PT Jobubu Jarum 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 PT Jobubu i.e., PT Jobubu and PT Mandiri go up and down completely randomly.
Pair Corralation between PT Jobubu and PT Mandiri
Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the PT Mandiri. In addition to that, PT Jobubu is 1.36 times more volatile than PT Mandiri Herindo. It trades about -0.1 of its total potential returns per unit of risk. PT Mandiri Herindo is currently generating about -0.11 per unit of volatility. If you would invest 24,000 in PT Mandiri Herindo on August 30, 2024 and sell it today you would lose (6,100) from holding PT Mandiri Herindo or give up 25.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Jobubu Jarum vs. PT Mandiri Herindo
Performance |
| Timeline |
| PT Jobubu Jarum |
| PT Mandiri Herindo |
PT Jobubu and PT Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jobubu and PT Mandiri
The main advantage of trading using opposite PT Jobubu and PT Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu 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.| PT Jobubu vs. Alumindo Light Metal | PT Jobubu vs. Pertamina Geothermal Energy | PT Jobubu vs. Indonesian Tobacco Tbk | PT Jobubu vs. Era Media Sejahtera |
| PT Mandiri vs. Weha Transportasi Indonesia | PT Mandiri vs. Nanotech Indonesia Global | PT Mandiri vs. PT Jobubu Jarum | PT Mandiri vs. Indonesian Tobacco 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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