Correlation Between Mayora Indah and Siantar Top
Can any of the company-specific risk be diversified away by investing in both Mayora Indah and Siantar Top 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 Mayora Indah and Siantar Top into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayora Indah Tbk and Siantar Top Tbk, you can compare the effects of market volatilities on Mayora Indah and Siantar Top 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 Mayora Indah with a short position of Siantar Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayora Indah and Siantar Top.
Diversification Opportunities for Mayora Indah and Siantar Top
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mayora and Siantar is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mayora Indah Tbk and Siantar Top Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siantar Top Tbk and Mayora Indah 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 Mayora Indah Tbk are associated (or correlated) with Siantar Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siantar Top Tbk has no effect on the direction of Mayora Indah i.e., Mayora Indah and Siantar Top go up and down completely randomly.
Pair Corralation between Mayora Indah and Siantar Top
Assuming the 90 days trading horizon Mayora Indah is expected to generate 4.37 times less return on investment than Siantar Top. But when comparing it to its historical volatility, Mayora Indah Tbk is 1.75 times less risky than Siantar Top. It trades about 0.02 of its potential returns per unit of risk. Siantar Top Tbk is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 750,000 in Siantar Top Tbk on September 2, 2024 and sell it today you would earn a total of 602,500 from holding Siantar Top Tbk or generate 80.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayora Indah Tbk vs. Siantar Top Tbk
Performance |
| Timeline |
| Mayora Indah Tbk |
| Siantar Top Tbk |
Mayora Indah and Siantar Top Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayora Indah and Siantar Top
The main advantage of trading using opposite Mayora Indah and Siantar Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayora Indah position performs unexpectedly, Siantar Top 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 Siantar Top will offset losses from the drop in Siantar Top's long position.| Mayora Indah vs. Bank BRISyariah Tbk | Mayora Indah vs. Mitra Pinasthika Mustika | Mayora Indah vs. Jakarta Int Hotels | Mayora Indah vs. Indosterling Technomedia Tbk |
| Siantar Top vs. Sekar Laut Tbk | Siantar Top vs. Prasidha Aneka Niaga | Siantar Top vs. Mandom Indonesia Tbk | Siantar Top vs. Multi Bintang 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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