Correlation Between Martina Berto and Austindo Nusantara
Can any of the company-specific risk be diversified away by investing in both Martina Berto and Austindo Nusantara 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 Martina Berto and Austindo Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martina Berto Tbk and Austindo Nusantara Jaya, you can compare the effects of market volatilities on Martina Berto and Austindo Nusantara 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 Martina Berto with a short position of Austindo Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martina Berto and Austindo Nusantara.
Diversification Opportunities for Martina Berto and Austindo Nusantara
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martina and Austindo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Martina Berto Tbk and Austindo Nusantara Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austindo Nusantara Jaya and Martina Berto 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 Martina Berto Tbk are associated (or correlated) with Austindo Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austindo Nusantara Jaya has no effect on the direction of Martina Berto i.e., Martina Berto and Austindo Nusantara go up and down completely randomly.
Pair Corralation between Martina Berto and Austindo Nusantara
Assuming the 90 days trading horizon Martina Berto Tbk is expected to generate 2.59 times more return on investment than Austindo Nusantara. However, Martina Berto is 2.59 times more volatile than Austindo Nusantara Jaya. It trades about -0.05 of its potential returns per unit of risk. Austindo Nusantara Jaya is currently generating about -0.18 per unit of risk. If you would invest 9,300 in Martina Berto Tbk on September 13, 2024 and sell it today you would lose (200.00) from holding Martina Berto Tbk or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martina Berto Tbk vs. Austindo Nusantara Jaya
Performance |
| Timeline |
| Martina Berto Tbk |
| Austindo Nusantara Jaya |
Martina Berto and Austindo Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martina Berto and Austindo Nusantara
The main advantage of trading using opposite Martina Berto and Austindo Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martina Berto position performs unexpectedly, Austindo Nusantara 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 Austindo Nusantara will offset losses from the drop in Austindo Nusantara's long position.| Martina Berto vs. Austindo Nusantara Jaya | Martina Berto vs. Garudafood Putra Putri | Martina Berto vs. Provident Agro Tbk | Martina Berto vs. Dharma Satya Nusantara |
| Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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