Correlation Between Merdeka Copper and Trada Maritime
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Trada Maritime 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 Trada Maritime 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 Trada Maritime Tbk, you can compare the effects of market volatilities on Merdeka Copper and Trada Maritime 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 Trada Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Trada Maritime.
Diversification Opportunities for Merdeka Copper and Trada Maritime
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merdeka and Trada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Trada Maritime Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trada Maritime 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 Trada Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trada Maritime Tbk has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Trada Maritime go up and down completely randomly.
Pair Corralation between Merdeka Copper and Trada Maritime
If you would invest 158,000 in Merdeka Copper Gold on October 25, 2024 and sell it today you would earn a total of 2,500 from holding Merdeka Copper Gold or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Trada Maritime Tbk
Performance |
| Timeline |
| Merdeka Copper Gold |
| Trada Maritime Tbk |
Merdeka Copper and Trada Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Trada Maritime
The main advantage of trading using opposite Merdeka Copper and Trada Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Trada Maritime 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 Trada Maritime will offset losses from the drop in Trada Maritime's long position.| Merdeka Copper vs. Asiaplast Industries Tbk | Merdeka Copper vs. Argha Karya Prima | Merdeka Copper vs. Indal Aluminium Industry | Merdeka Copper vs. Alakasa Industrindo Tbk |
| Trada Maritime vs. Dharma Polimetal Tbk | Trada Maritime vs. PT Homeco Victoria | Trada Maritime vs. Indosterling Technomedia Tbk | Trada Maritime vs. Pertamina Geothermal Energy |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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