Correlation Between Mitrabahtera Segara and Buana Listya
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Buana Listya 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 Buana Listya 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 Buana Listya Tama, you can compare the effects of market volatilities on Mitrabahtera Segara and Buana Listya 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 Buana Listya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Buana Listya.
Diversification Opportunities for Mitrabahtera Segara and Buana Listya
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitrabahtera and Buana is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Buana Listya Tama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buana Listya Tama 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 Buana Listya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buana Listya Tama has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Buana Listya go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Buana Listya
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 0.59 times more return on investment than Buana Listya. However, Mitrabahtera Segara Sejati is 1.71 times less risky than Buana Listya. It trades about -0.03 of its potential returns per unit of risk. Buana Listya Tama is currently generating about -0.03 per unit of risk. If you would invest 113,500 in Mitrabahtera Segara Sejati on September 1, 2024 and sell it today you would lose (12,000) from holding Mitrabahtera Segara Sejati or give up 10.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Buana Listya Tama
Performance |
| Timeline |
| Mitrabahtera Segara |
| Buana Listya Tama |
Mitrabahtera Segara and Buana Listya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Buana Listya
The main advantage of trading using opposite Mitrabahtera Segara and Buana Listya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Buana Listya 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 Buana Listya will offset losses from the drop in Buana Listya's long position.| Mitrabahtera Segara vs. Matahari Department Store | Mitrabahtera Segara vs. Multi Medika Internasional | Mitrabahtera Segara vs. Visi Media Asia | Mitrabahtera Segara vs. Bayan Resources Tbk |
| Buana Listya vs. Ciptadana Asset Management | Buana Listya vs. Grand Kartech Tbk | Buana Listya vs. Anabatic Technologies Tbk | Buana Listya vs. Galva Technologies 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |