Correlation Between Imago Mulia and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Imago Mulia and PT Sunter 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 Imago Mulia and PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imago Mulia Persada and PT Sunter Lakeside, you can compare the effects of market volatilities on Imago Mulia and PT Sunter 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 Imago Mulia with a short position of PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imago Mulia and PT Sunter.
Diversification Opportunities for Imago Mulia and PT Sunter
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Imago and SNLK is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Imago Mulia Persada and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside and Imago Mulia 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 Imago Mulia Persada are associated (or correlated) with PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Imago Mulia i.e., Imago Mulia and PT Sunter go up and down completely randomly.
Pair Corralation between Imago Mulia and PT Sunter
Assuming the 90 days trading horizon Imago Mulia Persada is expected to generate 1.25 times more return on investment than PT Sunter. However, Imago Mulia is 1.25 times more volatile than PT Sunter Lakeside. It trades about 0.07 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about 0.05 per unit of risk. If you would invest 4,894 in Imago Mulia Persada on September 1, 2024 and sell it today you would earn a total of 3,406 from holding Imago Mulia Persada or generate 69.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.61% |
Values | Daily Returns |
Imago Mulia Persada vs. PT Sunter Lakeside
Performance |
Timeline |
Imago Mulia Persada |
PT Sunter Lakeside |
Imago Mulia and PT Sunter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Imago Mulia and PT Sunter
The main advantage of trading using opposite Imago Mulia and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imago Mulia position performs unexpectedly, PT Sunter 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 PT Sunter will offset losses from the drop in PT Sunter's long position.Imago Mulia vs. Panca Anugrah Wisesa | Imago Mulia vs. PT Sunter Lakeside | Imago Mulia vs. Nusa Palapa Gemilang | Imago Mulia vs. Ulima Nitra PT |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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