Correlation Between Ekadharma International and Matahari Department
Can any of the company-specific risk be diversified away by investing in both Ekadharma International and Matahari Department 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 Ekadharma International and Matahari Department into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekadharma International Tbk and Matahari Department Store, you can compare the effects of market volatilities on Ekadharma International and Matahari Department 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 Ekadharma International with a short position of Matahari Department. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekadharma International and Matahari Department.
Diversification Opportunities for Ekadharma International and Matahari Department
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ekadharma and Matahari is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ekadharma International Tbk and Matahari Department Store in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matahari Department Store and Ekadharma International 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 Ekadharma International Tbk are associated (or correlated) with Matahari Department. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matahari Department Store has no effect on the direction of Ekadharma International i.e., Ekadharma International and Matahari Department go up and down completely randomly.
Pair Corralation between Ekadharma International and Matahari Department
Assuming the 90 days trading horizon Ekadharma International Tbk is expected to generate 0.44 times more return on investment than Matahari Department. However, Ekadharma International Tbk is 2.26 times less risky than Matahari Department. It trades about -0.05 of its potential returns per unit of risk. Matahari Department Store is currently generating about -0.04 per unit of risk. If you would invest 24,897 in Ekadharma International Tbk on January 22, 2025 and sell it today you would lose (6,697) from holding Ekadharma International Tbk or give up 26.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ekadharma International Tbk vs. Matahari Department Store
Performance |
| Timeline |
| Ekadharma International |
| Matahari Department Store |
Ekadharma International and Matahari Department Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekadharma International and Matahari Department
The main advantage of trading using opposite Ekadharma International and Matahari Department positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekadharma International position performs unexpectedly, Matahari Department 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 Matahari Department will offset losses from the drop in Matahari Department's long position.| Ekadharma International vs. Ultra Jaya Milk | Ekadharma International vs. Colorpak Indonesia Tbk | Ekadharma International vs. Champion Pacific Indonesia | Ekadharma International vs. Duta Pertiwi Nusantara |
| Matahari Department vs. Pan Brothers Tbk | Matahari Department vs. Ricky Putra Globalindo | Matahari Department vs. Asia Pacific Fibers | Matahari Department vs. Asia Pacific Investama |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |