Correlation Between Mitrabahtera Segara and Elnusa Tbk
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Elnusa Tbk 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 Elnusa Tbk 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 Elnusa Tbk, you can compare the effects of market volatilities on Mitrabahtera Segara and Elnusa Tbk 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 Elnusa Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Elnusa Tbk.
Diversification Opportunities for Mitrabahtera Segara and Elnusa Tbk
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabahtera and Elnusa is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Elnusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elnusa Tbk 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 Elnusa Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elnusa Tbk has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Elnusa Tbk go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Elnusa Tbk
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to under-perform the Elnusa Tbk. In addition to that, Mitrabahtera Segara is 1.1 times more volatile than Elnusa Tbk. It trades about -0.03 of its total potential returns per unit of risk. Elnusa Tbk is currently generating about 0.03 per unit of volatility. If you would invest 42,200 in Elnusa Tbk on September 1, 2024 and sell it today you would earn a total of 2,000 from holding Elnusa Tbk or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Elnusa Tbk
Performance |
| Timeline |
| Mitrabahtera Segara |
| Elnusa Tbk |
Mitrabahtera Segara and Elnusa Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Elnusa Tbk
The main advantage of trading using opposite Mitrabahtera Segara and Elnusa Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Elnusa Tbk 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 Elnusa Tbk will offset losses from the drop in Elnusa Tbk'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 |
| Elnusa Tbk vs. Mitrabahtera Segara Sejati | Elnusa Tbk vs. Weha Transportasi Indonesia | Elnusa Tbk vs. Rig Tenders Tbk | Elnusa Tbk vs. Rukun Raharja 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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