Correlation Between Mitrabahtera Segara and Samudera Indonesia
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Samudera Indonesia 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 Samudera Indonesia 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 Samudera Indonesia Tbk, you can compare the effects of market volatilities on Mitrabahtera Segara and Samudera Indonesia 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 Samudera Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Samudera Indonesia.
Diversification Opportunities for Mitrabahtera Segara and Samudera Indonesia
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitrabahtera and Samudera is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Samudera Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samudera Indonesia 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 Samudera Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samudera Indonesia Tbk has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Samudera Indonesia go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Samudera Indonesia
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to under-perform the Samudera Indonesia. In addition to that, Mitrabahtera Segara is 1.12 times more volatile than Samudera Indonesia Tbk. It trades about -0.02 of its total potential returns per unit of risk. Samudera Indonesia Tbk is currently generating about 0.01 per unit of volatility. If you would invest 26,400 in Samudera Indonesia Tbk on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Samudera Indonesia Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Samudera Indonesia Tbk
Performance |
| Timeline |
| Mitrabahtera Segara |
| Samudera Indonesia Tbk |
Mitrabahtera Segara and Samudera Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Samudera Indonesia
The main advantage of trading using opposite Mitrabahtera Segara and Samudera Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Samudera Indonesia 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 Samudera Indonesia will offset losses from the drop in Samudera Indonesia's long position.| Mitrabahtera Segara vs. Adhi Karya Persero | Mitrabahtera Segara vs. Waskita Karya Persero | Mitrabahtera Segara vs. Pembangunan Perumahan PT | Mitrabahtera Segara vs. Jasa Marga Tbk |
| Samudera Indonesia vs. PT Temas Tbk | Samudera Indonesia vs. Petrosea Tbk | Samudera Indonesia vs. Rig Tenders Tbk | Samudera Indonesia vs. Rukun Raharja 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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