Correlation Between Martina Berto and Mustika Ratu
Can any of the company-specific risk be diversified away by investing in both Martina Berto and Mustika Ratu 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 Mustika Ratu 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 Mustika Ratu Tbk, you can compare the effects of market volatilities on Martina Berto and Mustika Ratu 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 Mustika Ratu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martina Berto and Mustika Ratu.
Diversification Opportunities for Martina Berto and Mustika Ratu
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martina and Mustika is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Martina Berto Tbk and Mustika Ratu Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mustika Ratu Tbk 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 Mustika Ratu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mustika Ratu Tbk has no effect on the direction of Martina Berto i.e., Martina Berto and Mustika Ratu go up and down completely randomly.
Pair Corralation between Martina Berto and Mustika Ratu
Assuming the 90 days trading horizon Martina Berto Tbk is expected to generate 1.26 times more return on investment than Mustika Ratu. However, Martina Berto is 1.26 times more volatile than Mustika Ratu Tbk. It trades about 0.01 of its potential returns per unit of risk. Mustika Ratu Tbk is currently generating about -0.06 per unit of risk. If you would invest 10,000 in Martina Berto Tbk on December 2, 2024 and sell it today you would lose (1,200) from holding Martina Berto Tbk or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Martina Berto Tbk vs. Mustika Ratu Tbk
Performance |
| Timeline |
| Martina Berto Tbk |
| Mustika Ratu Tbk |
Martina Berto and Mustika Ratu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martina Berto and Mustika Ratu
The main advantage of trading using opposite Martina Berto and Mustika Ratu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martina Berto position performs unexpectedly, Mustika Ratu 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 Mustika Ratu will offset losses from the drop in Mustika Ratu's long position.| Martina Berto vs. Mustika Ratu Tbk | ||
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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