Correlation Between Mitrabahtera Segara and Trans Power
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara and Trans Power 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 Trans Power 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 Trans Power Marine, you can compare the effects of market volatilities on Mitrabahtera Segara and Trans Power 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 Trans Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Trans Power.
Diversification Opportunities for Mitrabahtera Segara and Trans Power
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabahtera and Trans is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati and Trans Power Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trans Power Marine 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 Trans Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trans Power Marine has no effect on the direction of Mitrabahtera Segara i.e., Mitrabahtera Segara and Trans Power go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Trans Power
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to under-perform the Trans Power. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabahtera Segara Sejati is 1.14 times less risky than Trans Power. The stock trades about -0.03 of its potential returns per unit of risk. The Trans Power Marine is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 68,500 in Trans Power Marine on September 1, 2024 and sell it today you would lose (4,500) from holding Trans Power Marine or give up 6.57% 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. Trans Power Marine
Performance |
| Timeline |
| Mitrabahtera Segara |
| Trans Power Marine |
Mitrabahtera Segara and Trans Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Trans Power
The main advantage of trading using opposite Mitrabahtera Segara and Trans Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara position performs unexpectedly, Trans Power 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 Trans Power will offset losses from the drop in Trans Power's long position.| Mitrabahtera Segara vs. Matahari Department Store | Mitrabahtera Segara vs. Multi Medika Internasional | Mitrabahtera Segara vs. Visi Media Asia | Mitrabahtera Segara vs. Bayan Resources Tbk |
| Trans Power vs. Matahari Department Store | Trans Power vs. Multi Medika Internasional | Trans Power vs. Visi Media Asia | Trans Power vs. Bayan Resources 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |