Correlation Between Mahkota Group and Pt Pradiksi
Can any of the company-specific risk be diversified away by investing in both Mahkota Group and Pt Pradiksi 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 Mahkota Group and Pt Pradiksi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mahkota Group Tbk and Pt Pradiksi Gunatama, you can compare the effects of market volatilities on Mahkota Group and Pt Pradiksi 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 Mahkota Group with a short position of Pt Pradiksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahkota Group and Pt Pradiksi.
Diversification Opportunities for Mahkota Group and Pt Pradiksi
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mahkota and PGUN is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mahkota Group Tbk and Pt Pradiksi Gunatama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pradiksi Gunatama and Mahkota Group 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 Mahkota Group Tbk are associated (or correlated) with Pt Pradiksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pradiksi Gunatama has no effect on the direction of Mahkota Group i.e., Mahkota Group and Pt Pradiksi go up and down completely randomly.
Pair Corralation between Mahkota Group and Pt Pradiksi
Assuming the 90 days trading horizon Mahkota Group Tbk is expected to generate 1.38 times more return on investment than Pt Pradiksi. However, Mahkota Group is 1.38 times more volatile than Pt Pradiksi Gunatama. It trades about 0.02 of its potential returns per unit of risk. Pt Pradiksi Gunatama is currently generating about -0.02 per unit of risk. If you would invest 65,000 in Mahkota Group Tbk on September 12, 2024 and sell it today you would earn a total of 4,500 from holding Mahkota Group Tbk or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahkota Group Tbk vs. Pt Pradiksi Gunatama
Performance |
| Timeline |
| Mahkota Group Tbk |
| Pt Pradiksi Gunatama |
Mahkota Group and Pt Pradiksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahkota Group and Pt Pradiksi
The main advantage of trading using opposite Mahkota Group and Pt Pradiksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahkota Group position performs unexpectedly, Pt Pradiksi 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 Pt Pradiksi will offset losses from the drop in Pt Pradiksi's long position.| Mahkota Group vs. Austindo Nusantara Jaya | Mahkota Group vs. Garudafood Putra Putri | Mahkota Group vs. Provident Agro Tbk | Mahkota Group vs. Dharma Satya Nusantara |
| Pt Pradiksi vs. Mahkota Group Tbk | Pt Pradiksi vs. Palma Serasih PT | Pt Pradiksi vs. Cisadane Sawit Raya | Pt Pradiksi vs. Diamond Food Indonesia |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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