Correlation Between MAP Aktif and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both MAP Aktif and Mitrabahtera Segara 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 MAP Aktif and Mitrabahtera Segara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAP Aktif Adiperkasa and Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on MAP Aktif and Mitrabahtera Segara 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 MAP Aktif with a short position of Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAP Aktif and Mitrabahtera Segara.
Diversification Opportunities for MAP Aktif and Mitrabahtera Segara
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MAP and Mitrabahtera is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MAP Aktif Adiperkasa and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara and MAP Aktif 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 MAP Aktif Adiperkasa are associated (or correlated) with Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of MAP Aktif i.e., MAP Aktif and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between MAP Aktif and Mitrabahtera Segara
Assuming the 90 days trading horizon MAP Aktif Adiperkasa is expected to under-perform the Mitrabahtera Segara. In addition to that, MAP Aktif is 1.83 times more volatile than Mitrabahtera Segara Sejati. It trades about -0.2 of its total potential returns per unit of risk. Mitrabahtera Segara Sejati is currently generating about -0.02 per unit of volatility. If you would invest 103,500 in Mitrabahtera Segara Sejati on October 20, 2024 and sell it today you would lose (1,000.00) from holding Mitrabahtera Segara Sejati or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAP Aktif Adiperkasa vs. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| MAP Aktif Adiperkasa |
| Mitrabahtera Segara |
MAP Aktif and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAP Aktif and Mitrabahtera Segara
The main advantage of trading using opposite MAP Aktif and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAP Aktif position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara's long position.| MAP Aktif vs. Surya Permata Andalan | MAP Aktif vs. Aneka Gas Industri | MAP Aktif vs. Buana Listya Tama | MAP Aktif vs. Trisula Textile Industries |
| Mitrabahtera Segara vs. Adhi Karya Persero | Mitrabahtera Segara vs. Waskita Karya Persero | Mitrabahtera Segara vs. Pembangunan Perumahan PT | Mitrabahtera Segara vs. Jasa Marga 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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