Correlation Between Matahari Department and Nusantara Infrastructure
Can any of the company-specific risk be diversified away by investing in both Matahari Department and Nusantara Infrastructure 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 Matahari Department and Nusantara Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matahari Department Store and Nusantara Infrastructure Tbk, you can compare the effects of market volatilities on Matahari Department and Nusantara Infrastructure 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 Matahari Department with a short position of Nusantara Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matahari Department and Nusantara Infrastructure.
Diversification Opportunities for Matahari Department and Nusantara Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Matahari and Nusantara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Matahari Department Store and Nusantara Infrastructure Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Infrastructure and Matahari Department 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 Matahari Department Store are associated (or correlated) with Nusantara Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Infrastructure has no effect on the direction of Matahari Department i.e., Matahari Department and Nusantara Infrastructure go up and down completely randomly.
Pair Corralation between Matahari Department and Nusantara Infrastructure
If you would invest 23,800 in Nusantara Infrastructure Tbk on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Nusantara Infrastructure Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matahari Department Store vs. Nusantara Infrastructure Tbk
Performance |
| Timeline |
| Matahari Department Store |
| Nusantara Infrastructure |
Matahari Department and Nusantara Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matahari Department and Nusantara Infrastructure
The main advantage of trading using opposite Matahari Department and Nusantara Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matahari Department position performs unexpectedly, Nusantara Infrastructure 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 Nusantara Infrastructure will offset losses from the drop in Nusantara Infrastructure's long position.| Matahari Department vs. Surya Citra Media | Matahari Department vs. Akr Corporindo Tbk | Matahari Department vs. Media Nusantara Citra | Matahari Department vs. Pembangunan Perumahan 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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