Correlation Between Elang Mahkota and Enseval Putra
Can any of the company-specific risk be diversified away by investing in both Elang Mahkota and Enseval Putra 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 Elang Mahkota and Enseval Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elang Mahkota Teknologi and Enseval Putra Megatrading, you can compare the effects of market volatilities on Elang Mahkota and Enseval Putra 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 Elang Mahkota with a short position of Enseval Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elang Mahkota and Enseval Putra.
Diversification Opportunities for Elang Mahkota and Enseval Putra
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elang and Enseval is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Elang Mahkota Teknologi and Enseval Putra Megatrading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enseval Putra Megatrading and Elang Mahkota 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 Elang Mahkota Teknologi are associated (or correlated) with Enseval Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enseval Putra Megatrading has no effect on the direction of Elang Mahkota i.e., Elang Mahkota and Enseval Putra go up and down completely randomly.
Pair Corralation between Elang Mahkota and Enseval Putra
Assuming the 90 days trading horizon Elang Mahkota Teknologi is expected to generate 3.08 times more return on investment than Enseval Putra. However, Elang Mahkota is 3.08 times more volatile than Enseval Putra Megatrading. It trades about 0.0 of its potential returns per unit of risk. Enseval Putra Megatrading is currently generating about -0.04 per unit of risk. If you would invest 73,732 in Elang Mahkota Teknologi on September 12, 2024 and sell it today you would lose (12,232) from holding Elang Mahkota Teknologi or give up 16.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elang Mahkota Teknologi vs. Enseval Putra Megatrading
Performance |
| Timeline |
| Elang Mahkota Teknologi |
| Enseval Putra Megatrading |
Elang Mahkota and Enseval Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elang Mahkota and Enseval Putra
The main advantage of trading using opposite Elang Mahkota and Enseval Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elang Mahkota position performs unexpectedly, Enseval Putra 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 Enseval Putra will offset losses from the drop in Enseval Putra's long position.| Elang Mahkota vs. Mnc Land Tbk | Elang Mahkota vs. MNC Vision Networks | Elang Mahkota vs. MD Pictures Tbk | Elang Mahkota vs. Link Net Tbk |
| Enseval Putra vs. Mitra Keluarga Karyasehat | Enseval Putra vs. Siloam International Hospitals | Enseval Putra vs. Sumber Alfaria Trijaya | Enseval Putra vs. Elang Mahkota Teknologi |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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