Correlation Between Matahari Putra and Arkadia Digital
Can any of the company-specific risk be diversified away by investing in both Matahari Putra and Arkadia Digital 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 Matahari Putra and Arkadia Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matahari Putra Prima and Arkadia Digital Media, you can compare the effects of market volatilities on Matahari Putra and Arkadia Digital 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 Matahari Putra with a short position of Arkadia Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matahari Putra and Arkadia Digital.
Diversification Opportunities for Matahari Putra and Arkadia Digital
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matahari and Arkadia is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Matahari Putra Prima and Arkadia Digital Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkadia Digital Media and Matahari Putra 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 Matahari Putra Prima are associated (or correlated) with Arkadia Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkadia Digital Media has no effect on the direction of Matahari Putra i.e., Matahari Putra and Arkadia Digital go up and down completely randomly.
Pair Corralation between Matahari Putra and Arkadia Digital
Assuming the 90 days trading horizon Matahari Putra Prima is expected to under-perform the Arkadia Digital. In addition to that, Matahari Putra is 2.29 times more volatile than Arkadia Digital Media. It trades about -0.2 of its total potential returns per unit of risk. Arkadia Digital Media is currently generating about -0.16 per unit of volatility. If you would invest 1,500 in Arkadia Digital Media on August 31, 2024 and sell it today you would lose (200.00) from holding Arkadia Digital Media or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matahari Putra Prima vs. Arkadia Digital Media
Performance |
| Timeline |
| Matahari Putra Prima |
| Arkadia Digital Media |
Matahari Putra and Arkadia Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matahari Putra and Arkadia Digital
The main advantage of trading using opposite Matahari Putra and Arkadia Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matahari Putra position performs unexpectedly, Arkadia Digital 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 Arkadia Digital will offset losses from the drop in Arkadia Digital's long position.| Matahari Putra vs. Multipolar Tbk | Matahari Putra vs. Ramayana Lestari Sentosa | Matahari Putra vs. Lippo Karawaci Tbk | Matahari Putra vs. Mitra Adiperkasa Tbk |
| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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