Correlation Between Elang Mahkota and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Elang Mahkota and Era Mandiri 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 Era Mandiri 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 Era Mandiri Cemerlang, you can compare the effects of market volatilities on Elang Mahkota and Era Mandiri 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 Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elang Mahkota and Era Mandiri.
Diversification Opportunities for Elang Mahkota and Era Mandiri
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elang and Era is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Elang Mahkota Teknologi and Era Mandiri Cemerlang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Mandiri Cemerlang 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 Era Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Mandiri Cemerlang has no effect on the direction of Elang Mahkota i.e., Elang Mahkota and Era Mandiri go up and down completely randomly.
Pair Corralation between Elang Mahkota and Era Mandiri
Assuming the 90 days trading horizon Elang Mahkota Teknologi is expected to generate 0.82 times more return on investment than Era Mandiri. However, Elang Mahkota Teknologi is 1.23 times less risky than Era Mandiri. It trades about 0.02 of its potential returns per unit of risk. Era Mandiri Cemerlang is currently generating about -0.05 per unit of risk. If you would invest 60,866 in Elang Mahkota Teknologi on September 12, 2024 and sell it today you would earn a total of 634.00 from holding Elang Mahkota Teknologi or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elang Mahkota Teknologi vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Elang Mahkota Teknologi |
| Era Mandiri Cemerlang |
Elang Mahkota and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elang Mahkota and Era Mandiri
The main advantage of trading using opposite Elang Mahkota and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elang Mahkota position performs unexpectedly, Era Mandiri 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 Era Mandiri will offset losses from the drop in Era Mandiri'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 |
| Era Mandiri vs. Putra Rajawali Kencana | Era Mandiri vs. Sinergi Inti Plastindo | Era Mandiri vs. Karya Bersama Anugerah | Era Mandiri vs. Jasnita Telekomindo 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |