Correlation Between Puradelta Lestari and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Puradelta Lestari and Mega Manunggal 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 Puradelta Lestari and Mega Manunggal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puradelta Lestari PT and Mega Manunggal Property, you can compare the effects of market volatilities on Puradelta Lestari and Mega Manunggal 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 Puradelta Lestari with a short position of Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puradelta Lestari and Mega Manunggal.
Diversification Opportunities for Puradelta Lestari and Mega Manunggal
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puradelta and Mega is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Puradelta Lestari PT and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property and Puradelta Lestari 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 Puradelta Lestari PT are associated (or correlated) with Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Puradelta Lestari i.e., Puradelta Lestari and Mega Manunggal go up and down completely randomly.
Pair Corralation between Puradelta Lestari and Mega Manunggal
Assuming the 90 days trading horizon Puradelta Lestari PT is expected to generate 0.23 times more return on investment than Mega Manunggal. However, Puradelta Lestari PT is 4.4 times less risky than Mega Manunggal. It trades about -0.28 of its potential returns per unit of risk. Mega Manunggal Property is currently generating about -0.19 per unit of risk. If you would invest 16,500 in Puradelta Lestari PT on September 1, 2024 and sell it today you would lose (500.00) from holding Puradelta Lestari PT or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Puradelta Lestari PT vs. Mega Manunggal Property
Performance |
| Timeline |
| Puradelta Lestari |
| Mega Manunggal Property |
Puradelta Lestari and Mega Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puradelta Lestari and Mega Manunggal
The main advantage of trading using opposite Puradelta Lestari and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puradelta Lestari position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal's long position.| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
| Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan Land 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |