Correlation Between Mark Dynamics and Unggul Indah
Can any of the company-specific risk be diversified away by investing in both Mark Dynamics and Unggul Indah 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 Unggul Indah 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 Unggul Indah Cahaya, you can compare the effects of market volatilities on Mark Dynamics and Unggul Indah 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 Unggul Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mark Dynamics and Unggul Indah.
Diversification Opportunities for Mark Dynamics and Unggul Indah
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mark and Unggul is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mark Dynamics Indonesia and Unggul Indah Cahaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unggul Indah Cahaya 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 Unggul Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unggul Indah Cahaya has no effect on the direction of Mark Dynamics i.e., Mark Dynamics and Unggul Indah go up and down completely randomly.
Pair Corralation between Mark Dynamics and Unggul Indah
Assuming the 90 days trading horizon Mark Dynamics Indonesia is expected to generate 2.28 times more return on investment than Unggul Indah. However, Mark Dynamics is 2.28 times more volatile than Unggul Indah Cahaya. It trades about 0.09 of its potential returns per unit of risk. Unggul Indah Cahaya is currently generating about 0.01 per unit of risk. If you would invest 57,474 in Mark Dynamics Indonesia on August 25, 2024 and sell it today you would earn a total of 45,526 from holding Mark Dynamics Indonesia or generate 79.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mark Dynamics Indonesia vs. Unggul Indah Cahaya
Performance |
| Timeline |
| Mark Dynamics Indonesia |
| Unggul Indah Cahaya |
Mark Dynamics and Unggul Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mark Dynamics and Unggul Indah
The main advantage of trading using opposite Mark Dynamics and Unggul Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mark Dynamics position performs unexpectedly, Unggul Indah 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 Unggul Indah will offset losses from the drop in Unggul Indah'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 |
| Unggul Indah vs. Kedaung Indah Can | Unggul Indah vs. Langgeng Makmur Industri | Unggul Indah vs. Kabelindo Murni Tbk | Unggul Indah vs. Mustika Ratu 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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