Correlation Between Matahari Department and Total Bangun
Can any of the company-specific risk be diversified away by investing in both Matahari Department and Total Bangun 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 Total Bangun 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 Total Bangun Persada, you can compare the effects of market volatilities on Matahari Department and Total Bangun 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 Total Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matahari Department and Total Bangun.
Diversification Opportunities for Matahari Department and Total Bangun
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Matahari and Total is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Matahari Department Store and Total Bangun Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Bangun Persada 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 Total Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Bangun Persada has no effect on the direction of Matahari Department i.e., Matahari Department and Total Bangun go up and down completely randomly.
Pair Corralation between Matahari Department and Total Bangun
Assuming the 90 days trading horizon Matahari Department Store is expected to generate 0.66 times more return on investment than Total Bangun. However, Matahari Department Store is 1.51 times less risky than Total Bangun. It trades about -0.23 of its potential returns per unit of risk. Total Bangun Persada is currently generating about -0.17 per unit of risk. If you would invest 151,500 in Matahari Department Store on September 2, 2024 and sell it today you would lose (10,000) from holding Matahari Department Store or give up 6.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matahari Department Store vs. Total Bangun Persada
Performance |
| Timeline |
| Matahari Department Store |
| Total Bangun Persada |
Matahari Department and Total Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matahari Department and Total Bangun
The main advantage of trading using opposite Matahari Department and Total Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matahari Department position performs unexpectedly, Total Bangun 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 Total Bangun will offset losses from the drop in Total Bangun's long position.| Matahari Department vs. Japfa Comfeed Indonesia | Matahari Department vs. Charoen Pokphand Indonesia | Matahari Department vs. Erajaya Swasembada Tbk | Matahari Department vs. Indofood Cbp Sukses |
| Total Bangun vs. Matahari Department Store | Total Bangun vs. Multi Medika Internasional | Total Bangun vs. Visi Media Asia | Total Bangun vs. Bayan Resources 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |