Correlation Between Mitrabahtera Segara and Sentra Food
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Sentra Food 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 Sentra Food 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 Sentra Food Indonesia, you can compare the effects of market volatilities on Mitrabahtera Segara and Sentra Food 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 Sentra Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Sentra Food.
Diversification Opportunities for Mitrabahtera Segara and Sentra Food
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabahtera and Sentra is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Sentra Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentra Food Indonesia 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 Sentra Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentra Food Indonesia has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Sentra Food go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Sentra Food
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to under-perform the Sentra Food. In addition to that, Mitrabahtera Segara is 1.98 times more volatile than Sentra Food Indonesia. It trades about -0.01 of its total potential returns per unit of risk. Sentra Food Indonesia is currently generating about 0.0 per unit of volatility. If you would invest 11,600 in Sentra Food Indonesia on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Sentra Food Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Sentra Food Indonesia
Performance |
| Timeline |
| Mitrabahtera Segara |
| Sentra Food Indonesia |
Mitrabahtera Segara and Sentra Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Sentra Food
The main advantage of trading using opposite Mitrabahtera Segara and Sentra Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Sentra Food 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 Sentra Food will offset losses from the drop in Sentra Food's long position.| Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
| Sentra Food vs. Garudafood Putra Putri | Sentra Food vs. Wijaya Karya Bangunan | Sentra Food vs. Mitrabara Adiperdana PT | Sentra Food vs. PT Multi Garam |
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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