Correlation Between Energi Mega and Elnusa Tbk
Can any of the company-specific risk be diversified away by investing in both Energi Mega and Elnusa Tbk 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 Energi Mega and Elnusa Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energi Mega Persada and Elnusa Tbk, you can compare the effects of market volatilities on Energi Mega and Elnusa Tbk 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 Energi Mega with a short position of Elnusa Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energi Mega and Elnusa Tbk.
Diversification Opportunities for Energi Mega and Elnusa Tbk
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energi and Elnusa is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Energi Mega Persada and Elnusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elnusa Tbk and Energi Mega 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 Energi Mega Persada are associated (or correlated) with Elnusa Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elnusa Tbk has no effect on the direction of Energi Mega i.e., Energi Mega and Elnusa Tbk go up and down completely randomly.
Pair Corralation between Energi Mega and Elnusa Tbk
Assuming the 90 days trading horizon Energi Mega Persada is expected to under-perform the Elnusa Tbk. In addition to that, Energi Mega is 3.12 times more volatile than Elnusa Tbk. It trades about -0.17 of its total potential returns per unit of risk. Elnusa Tbk is currently generating about -0.2 per unit of volatility. If you would invest 47,200 in Elnusa Tbk on August 31, 2024 and sell it today you would lose (2,800) from holding Elnusa Tbk or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Energi Mega Persada vs. Elnusa Tbk
Performance |
| Timeline |
| Energi Mega Persada |
| Elnusa Tbk |
Energi Mega and Elnusa Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energi Mega and Elnusa Tbk
The main advantage of trading using opposite Energi Mega and Elnusa Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energi Mega position performs unexpectedly, Elnusa Tbk 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 Elnusa Tbk will offset losses from the drop in Elnusa Tbk's long position.| Energi Mega vs. Mitrabahtera Segara Sejati | Energi Mega vs. Weha Transportasi Indonesia | Energi Mega vs. Rig Tenders Tbk | Energi Mega vs. Rukun Raharja Tbk |
| Elnusa Tbk vs. Medco Energi Internasional | Elnusa Tbk vs. Timah Persero Tbk | Elnusa Tbk vs. Vale Indonesia Tbk | Elnusa Tbk vs. Indika Energy 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |