Correlation Between Mulia Boga and Sariguna Primatirta
Can any of the company-specific risk be diversified away by investing in both Mulia Boga and Sariguna Primatirta 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 Mulia Boga and Sariguna Primatirta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulia Boga Raya and Sariguna Primatirta PT, you can compare the effects of market volatilities on Mulia Boga and Sariguna Primatirta 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 Mulia Boga with a short position of Sariguna Primatirta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulia Boga and Sariguna Primatirta.
Diversification Opportunities for Mulia Boga and Sariguna Primatirta
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mulia and Sariguna is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mulia Boga Raya and Sariguna Primatirta PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sariguna Primatirta and Mulia Boga 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 Mulia Boga Raya are associated (or correlated) with Sariguna Primatirta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sariguna Primatirta has no effect on the direction of Mulia Boga i.e., Mulia Boga and Sariguna Primatirta go up and down completely randomly.
Pair Corralation between Mulia Boga and Sariguna Primatirta
Assuming the 90 days trading horizon Mulia Boga is expected to generate 2.11 times less return on investment than Sariguna Primatirta. In addition to that, Mulia Boga is 1.02 times more volatile than Sariguna Primatirta PT. It trades about 0.03 of its total potential returns per unit of risk. Sariguna Primatirta PT is currently generating about 0.07 per unit of volatility. If you would invest 58,592 in Sariguna Primatirta PT on August 27, 2024 and sell it today you would earn a total of 64,908 from holding Sariguna Primatirta PT or generate 110.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mulia Boga Raya vs. Sariguna Primatirta PT
Performance |
| Timeline |
| Mulia Boga Raya |
| Sariguna Primatirta |
Mulia Boga and Sariguna Primatirta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulia Boga and Sariguna Primatirta
The main advantage of trading using opposite Mulia Boga and Sariguna Primatirta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulia Boga position performs unexpectedly, Sariguna Primatirta 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 Sariguna Primatirta will offset losses from the drop in Sariguna Primatirta's long position.| Mulia Boga vs. Garudafood Putra Putri | Mulia Boga vs. Uni Charm Indonesia | Mulia Boga vs. Campina Ice Cream | Mulia Boga vs. Mitrabara Adiperdana PT |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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