Correlation Between Merdeka Copper and Rukun Raharja
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Rukun Raharja 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 Rukun Raharja 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 Rukun Raharja Tbk, you can compare the effects of market volatilities on Merdeka Copper and Rukun Raharja 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 Rukun Raharja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Rukun Raharja.
Diversification Opportunities for Merdeka Copper and Rukun Raharja
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merdeka and Rukun is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Rukun Raharja Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rukun Raharja Tbk 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 Rukun Raharja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rukun Raharja Tbk has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Rukun Raharja go up and down completely randomly.
Pair Corralation between Merdeka Copper and Rukun Raharja
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to under-perform the Rukun Raharja. But the stock apears to be less risky and, when comparing its historical volatility, Merdeka Copper Gold is 3.33 times less risky than Rukun Raharja. The stock trades about -0.34 of its potential returns per unit of risk. The Rukun Raharja Tbk is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 169,000 in Rukun Raharja Tbk on August 30, 2024 and sell it today you would earn a total of 64,000 from holding Rukun Raharja Tbk or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Rukun Raharja Tbk
Performance |
| Timeline |
| Merdeka Copper Gold |
| Rukun Raharja Tbk |
Merdeka Copper and Rukun Raharja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Rukun Raharja
The main advantage of trading using opposite Merdeka Copper and Rukun Raharja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Rukun Raharja 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 Rukun Raharja will offset losses from the drop in Rukun Raharja'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 |
| Rukun Raharja vs. Petrosea Tbk | Rukun Raharja vs. Harum Energy Tbk | Rukun Raharja vs. Perdana Karya Perkasa | Rukun Raharja vs. Bayan Resources 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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