Correlation Between Merdeka Copper and Sejahteraraya Anugrahjaya
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya Tbk, you can compare the effects of market volatilities on Merdeka Copper and Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Sejahteraraya Anugrahjaya.
Diversification Opportunities for Merdeka Copper and Sejahteraraya Anugrahjaya
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Merdeka and Sejahteraraya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Sejahteraraya Anugrahjaya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahteraraya Anugrahjaya has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Sejahteraraya Anugrahjaya go up and down completely randomly.
Pair Corralation between Merdeka Copper and Sejahteraraya Anugrahjaya
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to generate 7.83 times more return on investment than Sejahteraraya Anugrahjaya. However, Merdeka Copper is 7.83 times more volatile than Sejahteraraya Anugrahjaya Tbk. It trades about 0.02 of its potential returns per unit of risk. Sejahteraraya Anugrahjaya Tbk is currently generating about 0.14 per unit of risk. If you would invest 158,000 in Merdeka Copper Gold on November 28, 2024 and sell it today you would lose (500.00) from holding Merdeka Copper Gold or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Sejahteraraya Anugrahjaya Tbk
Performance |
| Timeline |
| Merdeka Copper Gold |
| Sejahteraraya Anugrahjaya |
Merdeka Copper and Sejahteraraya Anugrahjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Sejahteraraya Anugrahjaya
The main advantage of trading using opposite Merdeka Copper and Sejahteraraya Anugrahjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya will offset losses from the drop in Sejahteraraya Anugrahjaya'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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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