Correlation Between Erajaya Swasembada and Map Boga
Can any of the company-specific risk be diversified away by investing in both Erajaya Swasembada and Map Boga 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 Erajaya Swasembada and Map Boga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erajaya Swasembada Tbk and Map Boga Adiperkasa, you can compare the effects of market volatilities on Erajaya Swasembada and Map Boga 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 Erajaya Swasembada with a short position of Map Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erajaya Swasembada and Map Boga.
Diversification Opportunities for Erajaya Swasembada and Map Boga
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Erajaya and Map is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Erajaya Swasembada Tbk and Map Boga Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Map Boga Adiperkasa and Erajaya Swasembada 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 Erajaya Swasembada Tbk are associated (or correlated) with Map Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Map Boga Adiperkasa has no effect on the direction of Erajaya Swasembada i.e., Erajaya Swasembada and Map Boga go up and down completely randomly.
Pair Corralation between Erajaya Swasembada and Map Boga
Assuming the 90 days trading horizon Erajaya Swasembada Tbk is expected to under-perform the Map Boga. In addition to that, Erajaya Swasembada is 2.87 times more volatile than Map Boga Adiperkasa. It trades about -0.16 of its total potential returns per unit of risk. Map Boga Adiperkasa is currently generating about -0.22 per unit of volatility. If you would invest 143,000 in Map Boga Adiperkasa on September 1, 2024 and sell it today you would lose (5,000) from holding Map Boga Adiperkasa or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erajaya Swasembada Tbk vs. Map Boga Adiperkasa
Performance |
| Timeline |
| Erajaya Swasembada Tbk |
| Map Boga Adiperkasa |
Erajaya Swasembada and Map Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erajaya Swasembada and Map Boga
The main advantage of trading using opposite Erajaya Swasembada and Map Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erajaya Swasembada position performs unexpectedly, Map Boga 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 Map Boga will offset losses from the drop in Map Boga's long position.| Erajaya Swasembada vs. Ace Hardware Indonesia | Erajaya Swasembada vs. Japfa Comfeed Indonesia | Erajaya Swasembada vs. XL Axiata Tbk | Erajaya Swasembada vs. Pembangunan Perumahan PT |
| Map Boga vs. Japfa Comfeed Indonesia | Map Boga vs. Charoen Pokphand Indonesia | Map Boga vs. Erajaya Swasembada Tbk | Map Boga vs. Indofood Cbp Sukses |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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