Correlation Between Map Boga and Prima Alloy
Can any of the company-specific risk be diversified away by investing in both Map Boga and Prima Alloy 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 Boga and Prima Alloy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Map Boga Adiperkasa and Prima Alloy Steel, you can compare the effects of market volatilities on Map Boga and Prima Alloy 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 Boga with a short position of Prima Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Map Boga and Prima Alloy.
Diversification Opportunities for Map Boga and Prima Alloy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Map and Prima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Map Boga Adiperkasa and Prima Alloy Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Alloy Steel and Map Boga 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 Boga Adiperkasa are associated (or correlated) with Prima Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Alloy Steel has no effect on the direction of Map Boga i.e., Map Boga and Prima Alloy go up and down completely randomly.
Pair Corralation between Map Boga and Prima Alloy
If you would invest 9,700 in Prima Alloy Steel on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Prima Alloy Steel 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 |
Map Boga Adiperkasa vs. Prima Alloy Steel
Performance |
| Timeline |
| Map Boga Adiperkasa |
| Prima Alloy Steel |
Map Boga and Prima Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Map Boga and Prima Alloy
The main advantage of trading using opposite Map Boga and Prima Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Map Boga position performs unexpectedly, Prima Alloy 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 Prima Alloy will offset losses from the drop in Prima Alloy's long position.| Map Boga vs. Japfa Comfeed Indonesia | Map Boga vs. Charoen Pokphand Indonesia | Map Boga vs. Erajaya Swasembada Tbk | Map Boga vs. Indofood Cbp Sukses |
| Prima Alloy vs. Pan Brothers Tbk | Prima Alloy vs. Ricky Putra Globalindo | Prima Alloy vs. Asia Pacific Fibers | Prima Alloy vs. Multi Prima Sejahtera |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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