Correlation Between Benakat Petroleum and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both Benakat Petroleum 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 Benakat Petroleum and Mitrabahtera Segara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benakat Petroleum Energy and Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on Benakat Petroleum 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 Benakat Petroleum with a short position of Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benakat Petroleum and Mitrabahtera Segara.
Diversification Opportunities for Benakat Petroleum and Mitrabahtera Segara
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Benakat and Mitrabahtera is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Benakat Petroleum Energy and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara and Benakat Petroleum 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 Benakat Petroleum Energy 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 Benakat Petroleum i.e., Benakat Petroleum and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between Benakat Petroleum and Mitrabahtera Segara
Assuming the 90 days trading horizon Benakat Petroleum Energy is expected to generate 2.27 times more return on investment than Mitrabahtera Segara. However, Benakat Petroleum is 2.27 times more volatile than Mitrabahtera Segara Sejati. It trades about -0.03 of its potential returns per unit of risk. Mitrabahtera Segara Sejati is currently generating about -0.12 per unit of risk. If you would invest 7,800 in Benakat Petroleum Energy on August 31, 2024 and sell it today you would lose (400.00) from holding Benakat Petroleum Energy or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benakat Petroleum Energy vs. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| Benakat Petroleum Energy |
| Mitrabahtera Segara |
Benakat Petroleum and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benakat Petroleum and Mitrabahtera Segara
The main advantage of trading using opposite Benakat Petroleum and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benakat Petroleum 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.| Benakat Petroleum vs. Mitrabahtera Segara Sejati | Benakat Petroleum vs. Weha Transportasi Indonesia | Benakat Petroleum vs. Rig Tenders Tbk | Benakat Petroleum vs. Rukun Raharja Tbk |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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