Correlation Between Merdeka Copper and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Maming Enam 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 Merdeka Copper and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merdeka Copper Gold and Maming Enam Sembilan, you can compare the effects of market volatilities on Merdeka Copper and Maming Enam 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 Merdeka Copper with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Maming Enam.
Diversification Opportunities for Merdeka Copper and Maming Enam
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Merdeka and Maming is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Merdeka Copper 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 Merdeka Copper Gold are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Maming Enam go up and down completely randomly.
Pair Corralation between Merdeka Copper and Maming Enam
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to generate 0.64 times more return on investment than Maming Enam. However, Merdeka Copper Gold is 1.57 times less risky than Maming Enam. It trades about -0.5 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about -0.38 per unit of risk. If you would invest 235,000 in Merdeka Copper Gold on September 2, 2024 and sell it today you would lose (50,000) from holding Merdeka Copper Gold or give up 21.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Maming Enam Sembilan
Performance |
| Timeline |
| Merdeka Copper Gold |
| Maming Enam Sembilan |
Merdeka Copper and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Maming Enam
The main advantage of trading using opposite Merdeka Copper and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Merdeka Copper vs. Perusahaan Gas Negara | Merdeka Copper vs. Telkom Indonesia Tbk | Merdeka Copper vs. Mitra Pinasthika Mustika | Merdeka Copper vs. Jakarta Int Hotels |
| Maming Enam vs. HK Metals Utama | Maming Enam vs. Galva Technologies Tbk | Maming Enam vs. Trinitan Metals and | Maming Enam vs. Merdeka Copper Gold |
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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