Correlation Between Menteng Heritage and Campina Ice
Can any of the company-specific risk be diversified away by investing in both Menteng Heritage and Campina Ice 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 Menteng Heritage and Campina Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menteng Heritage Realty and Campina Ice Cream, you can compare the effects of market volatilities on Menteng Heritage and Campina Ice 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 Menteng Heritage with a short position of Campina Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menteng Heritage and Campina Ice.
Diversification Opportunities for Menteng Heritage and Campina Ice
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Menteng and Campina is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Menteng Heritage Realty and Campina Ice Cream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campina Ice Cream and Menteng Heritage 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 Menteng Heritage Realty are associated (or correlated) with Campina Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campina Ice Cream has no effect on the direction of Menteng Heritage i.e., Menteng Heritage and Campina Ice go up and down completely randomly.
Pair Corralation between Menteng Heritage and Campina Ice
Assuming the 90 days trading horizon Menteng Heritage Realty is expected to generate 2.18 times more return on investment than Campina Ice. However, Menteng Heritage is 2.18 times more volatile than Campina Ice Cream. It trades about 0.39 of its potential returns per unit of risk. Campina Ice Cream is currently generating about -0.22 per unit of risk. If you would invest 3,200 in Menteng Heritage Realty on August 31, 2024 and sell it today you would earn a total of 1,400 from holding Menteng Heritage Realty or generate 43.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menteng Heritage Realty vs. Campina Ice Cream
Performance |
| Timeline |
| Menteng Heritage Realty |
| Campina Ice Cream |
Menteng Heritage and Campina Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menteng Heritage and Campina Ice
The main advantage of trading using opposite Menteng Heritage and Campina Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menteng Heritage position performs unexpectedly, Campina Ice 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 Campina Ice will offset losses from the drop in Campina Ice's long position.| Menteng Heritage vs. Jasa Armada Indonesia | Menteng Heritage vs. Cahayaputra Asa Keramik | Menteng Heritage vs. Campina Ice Cream | Menteng Heritage vs. Integra Indocabinet Tbk |
| Campina Ice vs. Sariguna Primatirta PT | Campina Ice vs. Garudafood Putra Putri | Campina Ice vs. Buyung Poetra Sembada | Campina Ice vs. Integra Indocabinet 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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