Correlation Between Mahkota Group and Super Energy
Can any of the company-specific risk be diversified away by investing in both Mahkota Group and Super Energy 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 Super Energy 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 Super Energy Tbk, you can compare the effects of market volatilities on Mahkota Group and Super Energy 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 Super Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahkota Group and Super Energy.
Diversification Opportunities for Mahkota Group and Super Energy
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mahkota and Super is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mahkota Group Tbk and Super Energy Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Energy Tbk 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 Super Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Energy Tbk has no effect on the direction of Mahkota Group i.e., Mahkota Group and Super Energy go up and down completely randomly.
Pair Corralation between Mahkota Group and Super Energy
Assuming the 90 days trading horizon Mahkota Group Tbk is expected to under-perform the Super Energy. But the stock apears to be less risky and, when comparing its historical volatility, Mahkota Group Tbk is 1.0 times less risky than Super Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Super Energy Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 171,500 in Super Energy Tbk on September 1, 2024 and sell it today you would earn a total of 59,500 from holding Super Energy Tbk or generate 34.69% 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. Super Energy Tbk
Performance |
| Timeline |
| Mahkota Group Tbk |
| Super Energy Tbk |
Mahkota Group and Super Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahkota Group and Super Energy
The main advantage of trading using opposite Mahkota Group and Super Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahkota Group position performs unexpectedly, Super Energy 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 Super Energy will offset losses from the drop in Super Energy'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 |
| Super Energy vs. Mitrabahtera Segara Sejati | Super Energy vs. Weha Transportasi Indonesia | Super Energy vs. Rig Tenders Tbk | Super Energy vs. Rukun Raharja 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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