Correlation Between Mitrabahtera Segara and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Pembangunan Graha 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 Pembangunan Graha 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 Pembangunan Graha Lestari, you can compare the effects of market volatilities on Mitrabahtera Segara and Pembangunan Graha 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 Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Pembangunan Graha.
Diversification Opportunities for Mitrabahtera Segara and Pembangunan Graha
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitrabahtera and Pembangunan is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari 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 Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Pembangunan Graha go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Pembangunan Graha
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 0.52 times more return on investment than Pembangunan Graha. However, Mitrabahtera Segara Sejati is 1.94 times less risky than Pembangunan Graha. It trades about -0.01 of its potential returns per unit of risk. Pembangunan Graha Lestari is currently generating about -0.16 per unit of risk. If you would invest 106,500 in Mitrabahtera Segara Sejati on September 19, 2024 and sell it today you would lose (500.00) from holding Mitrabahtera Segara Sejati or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Pembangunan Graha Lestari
Performance |
| Timeline |
| Mitrabahtera Segara |
| Pembangunan Graha Lestari |
Mitrabahtera Segara and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Pembangunan Graha
The main advantage of trading using opposite Mitrabahtera Segara and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha'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 |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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