Correlation Between Mitrabahtera Segara and Golden Eagle
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Golden Eagle 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 Golden Eagle 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 Golden Eagle Energy, you can compare the effects of market volatilities on Mitrabahtera Segara and Golden Eagle 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 Golden Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Golden Eagle.
Diversification Opportunities for Mitrabahtera Segara and Golden Eagle
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitrabahtera and Golden is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Golden Eagle Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Eagle Energy 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 Golden Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Eagle Energy has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Golden Eagle go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Golden Eagle
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to under-perform the Golden Eagle. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabahtera Segara Sejati is 1.06 times less risky than Golden Eagle. The stock trades about -0.01 of its potential returns per unit of risk. The Golden Eagle Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 62,368 in Golden Eagle Energy on September 3, 2024 and sell it today you would earn a total of 11,132 from holding Golden Eagle Energy or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Golden Eagle Energy
Performance |
| Timeline |
| Mitrabahtera Segara |
| Golden Eagle Energy |
Mitrabahtera Segara and Golden Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Golden Eagle
The main advantage of trading using opposite Mitrabahtera Segara and Golden Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Golden Eagle 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 Golden Eagle will offset losses from the drop in Golden Eagle'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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