Correlation Between Mitrabahtera Segara and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid Jaya, you can compare the effects of market volatilities on Mitrabahtera Segara and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Hotel Sahid.
Diversification Opportunities for Mitrabahtera Segara and Hotel Sahid
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mitrabahtera and Hotel is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Hotel Sahid go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Hotel Sahid
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 0.94 times more return on investment than Hotel Sahid. However, Mitrabahtera Segara Sejati is 1.07 times less risky than Hotel Sahid. It trades about -0.01 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about -0.01 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Mitrabahtera Segara |
| Hotel Sahid Jaya |
Mitrabahtera Segara and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Hotel Sahid
The main advantage of trading using opposite Mitrabahtera Segara and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid'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 |
| Hotel Sahid vs. Pembangunan Graha Lestari | Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Mitrabara Adiperdana PT | Hotel Sahid 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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