Correlation Between Mark Dynamics and Cikarang Listrindo
Can any of the company-specific risk be diversified away by investing in both Mark Dynamics and Cikarang Listrindo 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 Mark Dynamics and Cikarang Listrindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mark Dynamics Indonesia and Cikarang Listrindo Tbk, you can compare the effects of market volatilities on Mark Dynamics and Cikarang Listrindo 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 Mark Dynamics with a short position of Cikarang Listrindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mark Dynamics and Cikarang Listrindo.
Diversification Opportunities for Mark Dynamics and Cikarang Listrindo
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mark and Cikarang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mark Dynamics Indonesia and Cikarang Listrindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cikarang Listrindo Tbk and Mark Dynamics 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 Mark Dynamics Indonesia are associated (or correlated) with Cikarang Listrindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cikarang Listrindo Tbk has no effect on the direction of Mark Dynamics i.e., Mark Dynamics and Cikarang Listrindo go up and down completely randomly.
Pair Corralation between Mark Dynamics and Cikarang Listrindo
Assuming the 90 days trading horizon Mark Dynamics Indonesia is expected to under-perform the Cikarang Listrindo. In addition to that, Mark Dynamics is 4.54 times more volatile than Cikarang Listrindo Tbk. It trades about -0.1 of its total potential returns per unit of risk. Cikarang Listrindo Tbk is currently generating about -0.06 per unit of volatility. If you would invest 70,500 in Cikarang Listrindo Tbk on August 25, 2024 and sell it today you would lose (500.00) from holding Cikarang Listrindo Tbk or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mark Dynamics Indonesia vs. Cikarang Listrindo Tbk
Performance |
| Timeline |
| Mark Dynamics Indonesia |
| Cikarang Listrindo Tbk |
Mark Dynamics and Cikarang Listrindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mark Dynamics and Cikarang Listrindo
The main advantage of trading using opposite Mark Dynamics and Cikarang Listrindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mark Dynamics position performs unexpectedly, Cikarang Listrindo 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 Cikarang Listrindo will offset losses from the drop in Cikarang Listrindo's long position.| Mark Dynamics vs. Samudera Indonesia Tbk | Mark Dynamics vs. Rukun Raharja Tbk | Mark Dynamics vs. PT Temas Tbk | Mark Dynamics vs. Weha Transportasi Indonesia |
| Cikarang Listrindo vs. Aneka Tambang Persero | Cikarang Listrindo vs. Bukit Asam Tbk | Cikarang Listrindo vs. Telkom Indonesia Tbk | Cikarang Listrindo vs. Astra International 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |