Correlation Between Mitrabahtera Segara and Harum Energy
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Harum Energy 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 Harum Energy 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 Harum Energy Tbk, you can compare the effects of market volatilities on Mitrabahtera Segara and Harum Energy 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 Harum Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Harum Energy.
Diversification Opportunities for Mitrabahtera Segara and Harum Energy
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mitrabahtera and Harum is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Harum Energy Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harum Energy 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 Harum Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harum Energy Tbk has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Harum Energy go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Harum Energy
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 1.08 times more return on investment than Harum Energy. However, Mitrabahtera Segara is 1.08 times more volatile than Harum Energy Tbk. It trades about -0.11 of its potential returns per unit of risk. Harum Energy Tbk is currently generating about -0.24 per unit of risk. If you would invest 107,000 in Mitrabahtera Segara Sejati on September 2, 2024 and sell it today you would lose (5,500) from holding Mitrabahtera Segara Sejati or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Harum Energy Tbk
Performance |
| Timeline |
| Mitrabahtera Segara |
| Harum Energy Tbk |
Mitrabahtera Segara and Harum Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Harum Energy
The main advantage of trading using opposite Mitrabahtera Segara and Harum Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Harum Energy 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 Harum Energy will offset losses from the drop in Harum Energy'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 |
| Harum Energy vs. Mitrabahtera Segara Sejati | Harum Energy vs. Weha Transportasi Indonesia | Harum Energy 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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