Correlation Between Mitrabahtera Segara and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Bekasi Fajar 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 Mitrabahtera Segara and Bekasi Fajar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitrabahtera Segara Sejati and Bekasi Fajar Industrial, you can compare the effects of market volatilities on Mitrabahtera Segara and Bekasi Fajar 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 Mitrabahtera Segara with a short position of Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Bekasi Fajar.
Diversification Opportunities for Mitrabahtera Segara and Bekasi Fajar
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mitrabahtera and Bekasi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial and Mitrabahtera Segara 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 Mitrabahtera Segara Sejati are associated (or correlated) with Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Bekasi Fajar
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to under-perform the Bekasi Fajar. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabahtera Segara Sejati is 1.31 times less risky than Bekasi Fajar. The stock trades about -0.03 of its potential returns per unit of risk. The Bekasi Fajar Industrial is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,600 in Bekasi Fajar Industrial on September 12, 2024 and sell it today you would earn a total of 400.00 from holding Bekasi Fajar Industrial or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Mitrabahtera Segara |
| Bekasi Fajar Industrial |
Mitrabahtera Segara and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Bekasi Fajar
The main advantage of trading using opposite Mitrabahtera Segara and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Bekasi Fajar 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 Bekasi Fajar will offset losses from the drop in Bekasi Fajar's long position.| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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