Correlation Between Mitrabahtera Segara and Pelita Samudera
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Pelita Samudera 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 Pelita Samudera 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 Pelita Samudera Shipping, you can compare the effects of market volatilities on Mitrabahtera Segara and Pelita Samudera 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 Pelita Samudera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Pelita Samudera.
Diversification Opportunities for Mitrabahtera Segara and Pelita Samudera
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabahtera and Pelita is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Pelita Samudera Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelita Samudera Shipping 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 Pelita Samudera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelita Samudera Shipping has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Pelita Samudera go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Pelita Samudera
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 3.84 times more return on investment than Pelita Samudera. However, Mitrabahtera Segara is 3.84 times more volatile than Pelita Samudera Shipping. It trades about 0.0 of its potential returns per unit of risk. Pelita Samudera Shipping is currently generating about -0.04 per unit of risk. If you would invest 103,000 in Mitrabahtera Segara Sejati on September 2, 2024 and sell it today you would lose (1,500) from holding Mitrabahtera Segara Sejati or give up 1.46% 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. Pelita Samudera Shipping
Performance |
| Timeline |
| Mitrabahtera Segara |
| Pelita Samudera Shipping |
Mitrabahtera Segara and Pelita Samudera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Pelita Samudera
The main advantage of trading using opposite Mitrabahtera Segara and Pelita Samudera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Pelita Samudera 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 Pelita Samudera will offset losses from the drop in Pelita Samudera'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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