Correlation Between Mitrabahtera Segara and Energi Mega
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Energi Mega 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 Energi Mega 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 Energi Mega Persada, you can compare the effects of market volatilities on Mitrabahtera Segara and Energi Mega 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 Energi Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Energi Mega.
Diversification Opportunities for Mitrabahtera Segara and Energi Mega
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mitrabahtera and Energi is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Energi Mega Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energi Mega Persada 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 Energi Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energi Mega Persada has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Energi Mega go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Energi Mega
Assuming the 90 days trading horizon Mitrabahtera Segara is expected to generate 45.98 times less return on investment than Energi Mega. But when comparing it to its historical volatility, Mitrabahtera Segara Sejati is 1.69 times less risky than Energi Mega. It trades about 0.0 of its potential returns per unit of risk. Energi Mega Persada is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20,000 in Energi Mega Persada on September 2, 2024 and sell it today you would earn a total of 4,200 from holding Energi Mega Persada or generate 21.0% 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. Energi Mega Persada
Performance |
| Timeline |
| Mitrabahtera Segara |
| Energi Mega Persada |
Mitrabahtera Segara and Energi Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Energi Mega
The main advantage of trading using opposite Mitrabahtera Segara and Energi Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Energi Mega 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 Energi Mega will offset losses from the drop in Energi Mega'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 |
| Energi Mega vs. Mitrabahtera Segara Sejati | Energi Mega vs. Weha Transportasi Indonesia | Energi Mega vs. Rig Tenders 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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