Correlation Between Merdeka Copper and Perusahaan Gas
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Perusahaan Gas 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 Perusahaan Gas 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 Perusahaan Gas Negara, you can compare the effects of market volatilities on Merdeka Copper and Perusahaan Gas 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 Perusahaan Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Perusahaan Gas.
Diversification Opportunities for Merdeka Copper and Perusahaan Gas
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Merdeka and Perusahaan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Perusahaan Gas Negara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Gas Negara 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 Perusahaan Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Gas Negara has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Perusahaan Gas go up and down completely randomly.
Pair Corralation between Merdeka Copper and Perusahaan Gas
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to under-perform the Perusahaan Gas. In addition to that, Merdeka Copper is 1.15 times more volatile than Perusahaan Gas Negara. It trades about -0.56 of its total potential returns per unit of risk. Perusahaan Gas Negara is currently generating about -0.05 per unit of volatility. If you would invest 156,500 in Perusahaan Gas Negara on September 1, 2024 and sell it today you would lose (4,000) from holding Perusahaan Gas Negara or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Perusahaan Gas Negara
Performance |
| Timeline |
| Merdeka Copper Gold |
| Perusahaan Gas Negara |
Merdeka Copper and Perusahaan Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Perusahaan Gas
The main advantage of trading using opposite Merdeka Copper and Perusahaan Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Perusahaan Gas 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 Perusahaan Gas will offset losses from the drop in Perusahaan Gas' 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 |
| Perusahaan Gas vs. Aneka Tambang Persero | Perusahaan Gas vs. Bukit Asam Tbk | Perusahaan Gas vs. Telkom Indonesia Tbk | Perusahaan Gas vs. Astra International 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |