Correlation Between Merdeka Copper and Centratama Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Centratama Telekomunikasi 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 Centratama Telekomunikasi 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 Centratama Telekomunikasi Ind, you can compare the effects of market volatilities on Merdeka Copper and Centratama Telekomunikasi 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 Centratama Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Centratama Telekomunikasi.
Diversification Opportunities for Merdeka Copper and Centratama Telekomunikasi
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Merdeka and Centratama is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Centratama Telekomunikasi Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centratama Telekomunikasi 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 Centratama Telekomunikasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centratama Telekomunikasi has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Centratama Telekomunikasi go up and down completely randomly.
Pair Corralation between Merdeka Copper and Centratama Telekomunikasi
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to under-perform the Centratama Telekomunikasi. But the stock apears to be less risky and, when comparing its historical volatility, Merdeka Copper Gold is 1.22 times less risky than Centratama Telekomunikasi. The stock trades about -0.56 of its potential returns per unit of risk. The Centratama Telekomunikasi Ind is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 5,500 in Centratama Telekomunikasi Ind on September 1, 2024 and sell it today you would lose (800.00) from holding Centratama Telekomunikasi Ind or give up 14.55% 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. Centratama Telekomunikasi Ind
Performance |
| Timeline |
| Merdeka Copper Gold |
| Centratama Telekomunikasi |
Merdeka Copper and Centratama Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Centratama Telekomunikasi
The main advantage of trading using opposite Merdeka Copper and Centratama Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Centratama Telekomunikasi 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 Centratama Telekomunikasi will offset losses from the drop in Centratama Telekomunikasi's long position.| Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
| Centratama Telekomunikasi vs. Indosat Tbk | Centratama Telekomunikasi vs. XL Axiata Tbk | Centratama Telekomunikasi vs. Energi Mega Persada | Centratama Telekomunikasi vs. Bakrie Brothers 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |