Correlation Between Batulicin Nusantara and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both Batulicin Nusantara and Mitrabahtera Segara 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 Batulicin Nusantara and Mitrabahtera Segara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batulicin Nusantara Maritim and Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on Batulicin Nusantara and Mitrabahtera Segara 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 Batulicin Nusantara with a short position of Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batulicin Nusantara and Mitrabahtera Segara.
Diversification Opportunities for Batulicin Nusantara and Mitrabahtera Segara
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Batulicin and Mitrabahtera is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Batulicin Nusantara Maritim and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara and Batulicin 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 Batulicin Nusantara Maritim are associated (or correlated) with Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of Batulicin Nusantara i.e., Batulicin Nusantara and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between Batulicin Nusantara and Mitrabahtera Segara
Assuming the 90 days trading horizon Batulicin Nusantara Maritim is expected to generate 1.93 times more return on investment than Mitrabahtera Segara. However, Batulicin Nusantara is 1.93 times more volatile than Mitrabahtera Segara Sejati. It trades about 0.2 of its potential returns per unit of risk. Mitrabahtera Segara Sejati is currently generating about 0.01 per unit of risk. If you would invest 17,800 in Batulicin Nusantara Maritim on November 2, 2024 and sell it today you would earn a total of 21,200 from holding Batulicin Nusantara Maritim or generate 119.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Batulicin Nusantara Maritim vs. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| Batulicin Nusantara |
| Mitrabahtera Segara |
Batulicin Nusantara and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batulicin Nusantara and Mitrabahtera Segara
The main advantage of trading using opposite Batulicin Nusantara and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batulicin Nusantara position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara's long position.| Batulicin Nusantara vs. PT Dewi Shri | Batulicin Nusantara vs. Habco Trans Maritima | Batulicin Nusantara vs. PT Hasnur Internasional | Batulicin Nusantara vs. PT Toba Surimi |
| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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