Correlation Between Mitrabahtera Segara and Pembangunan Jaya
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Pembangunan Jaya 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 Jaya 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 Jaya Ancol, you can compare the effects of market volatilities on Mitrabahtera Segara and Pembangunan Jaya 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 Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Pembangunan Jaya.
Diversification Opportunities for Mitrabahtera Segara and Pembangunan Jaya
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabahtera and Pembangunan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Pembangunan Jaya Ancol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Jaya Ancol 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 Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Jaya Ancol has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Pembangunan Jaya go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Pembangunan Jaya
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 1.6 times more return on investment than Pembangunan Jaya. However, Mitrabahtera Segara is 1.6 times more volatile than Pembangunan Jaya Ancol. It trades about -0.01 of its potential returns per unit of risk. Pembangunan Jaya Ancol is currently generating about -0.19 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Pembangunan Jaya Ancol
Performance |
| Timeline |
| Mitrabahtera Segara |
| Pembangunan Jaya Ancol |
Mitrabahtera Segara and Pembangunan Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Pembangunan Jaya
The main advantage of trading using opposite Mitrabahtera Segara and Pembangunan Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Pembangunan Jaya 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 Jaya will offset losses from the drop in Pembangunan Jaya'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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