Correlation Between Map Boga and Ricky Putra
Can any of the company-specific risk be diversified away by investing in both Map Boga and Ricky Putra 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 Ricky Putra 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 Ricky Putra Globalindo, you can compare the effects of market volatilities on Map Boga and Ricky Putra 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 Ricky Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Map Boga and Ricky Putra.
Diversification Opportunities for Map Boga and Ricky Putra
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Map and Ricky is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Map Boga Adiperkasa and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo 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 Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of Map Boga i.e., Map Boga and Ricky Putra go up and down completely randomly.
Pair Corralation between Map Boga and Ricky Putra
Assuming the 90 days trading horizon Map Boga Adiperkasa is expected to generate 0.08 times more return on investment than Ricky Putra. However, Map Boga Adiperkasa is 12.19 times less risky than Ricky Putra. It trades about -0.21 of its potential returns per unit of risk. Ricky Putra Globalindo is currently generating about -0.09 per unit of risk. If you would invest 144,000 in Map Boga Adiperkasa on August 25, 2024 and sell it today you would lose (1,000.00) from holding Map Boga Adiperkasa or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Map Boga Adiperkasa vs. Ricky Putra Globalindo
Performance |
| Timeline |
| Map Boga Adiperkasa |
| Ricky Putra Globalindo |
Map Boga and Ricky Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Map Boga and Ricky Putra
The main advantage of trading using opposite Map Boga and Ricky Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Map Boga position performs unexpectedly, Ricky Putra 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 Ricky Putra will offset losses from the drop in Ricky Putra's long position.| Map Boga vs. MAP Aktif Adiperkasa | Map Boga vs. Fast Food Indonesia | Map Boga vs. PT Sarimelati Kencana | Map Boga vs. Prodia Widyahusada Tbk |
| Ricky Putra vs. Pan Brothers Tbk | Ricky Putra vs. Sunson Textile Manufacturer | Ricky Putra vs. Asia Pacific Fibers | Ricky Putra vs. Prima Alloy Steel |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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