Correlation Between Imago Mulia and PT Boston
Can any of the company-specific risk be diversified away by investing in both Imago Mulia and PT Boston 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 Boston 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 Boston Furniture, you can compare the effects of market volatilities on Imago Mulia and PT Boston 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 Boston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imago Mulia and PT Boston.
Diversification Opportunities for Imago Mulia and PT Boston
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imago and SOFA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Imago Mulia Persada and PT Boston Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Boston Furniture 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 Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Boston Furniture has no effect on the direction of Imago Mulia i.e., Imago Mulia and PT Boston go up and down completely randomly.
Pair Corralation between Imago Mulia and PT Boston
Assuming the 90 days trading horizon Imago Mulia Persada is expected to generate 1.35 times more return on investment than PT Boston. However, Imago Mulia is 1.35 times more volatile than PT Boston Furniture. It trades about 0.04 of its potential returns per unit of risk. PT Boston Furniture is currently generating about 0.03 per unit of risk. If you would invest 5,459 in Imago Mulia Persada on September 3, 2024 and sell it today you would earn a total of 2,841 from holding Imago Mulia Persada or generate 52.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imago Mulia Persada vs. PT Boston Furniture
Performance |
| Timeline |
| Imago Mulia Persada |
| PT Boston Furniture |
Imago Mulia and PT Boston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imago Mulia and PT Boston
The main advantage of trading using opposite Imago Mulia and PT Boston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imago Mulia position performs unexpectedly, PT Boston 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 Boston will offset losses from the drop in PT Boston's long position.| Imago Mulia vs. Mitra Pinasthika Mustika | Imago Mulia vs. Jakarta Int Hotels | Imago Mulia vs. Indosat Tbk | Imago Mulia vs. Inocycle Technology Tbk |
| PT Boston vs. Mitra Pinasthika Mustika | PT Boston vs. Jakarta Int Hotels | PT Boston vs. Indosat Tbk | PT Boston vs. Inocycle Technology 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 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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