Correlation Between PT Techno9 and Malindo Feedmill
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Malindo Feedmill 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 PT Techno9 and Malindo Feedmill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and Malindo Feedmill Tbk, you can compare the effects of market volatilities on PT Techno9 and Malindo Feedmill 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 PT Techno9 with a short position of Malindo Feedmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Malindo Feedmill.
Diversification Opportunities for PT Techno9 and Malindo Feedmill
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NINE and Malindo is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Malindo Feedmill Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malindo Feedmill Tbk and PT Techno9 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 PT Techno9 Indonesia are associated (or correlated) with Malindo Feedmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malindo Feedmill Tbk has no effect on the direction of PT Techno9 i.e., PT Techno9 and Malindo Feedmill go up and down completely randomly.
Pair Corralation between PT Techno9 and Malindo Feedmill
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 1.51 times more return on investment than Malindo Feedmill. However, PT Techno9 is 1.51 times more volatile than Malindo Feedmill Tbk. It trades about 2.58 of its potential returns per unit of risk. Malindo Feedmill Tbk is currently generating about -0.01 per unit of risk. If you would invest 1,000.00 in PT Techno9 Indonesia on September 2, 2024 and sell it today you would earn a total of 3,200 from holding PT Techno9 Indonesia or generate 320.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Malindo Feedmill Tbk
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Malindo Feedmill Tbk |
PT Techno9 and Malindo Feedmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Malindo Feedmill
The main advantage of trading using opposite PT Techno9 and Malindo Feedmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Malindo Feedmill 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 Malindo Feedmill will offset losses from the drop in Malindo Feedmill's long position.| PT Techno9 vs. Multipolar Technology Tbk | PT Techno9 vs. Digital Mediatama Maxima | PT Techno9 vs. NFC Indonesia PT | PT Techno9 vs. Kioson Komersial Indonesia |
| Malindo Feedmill vs. Bank BRISyariah Tbk | Malindo Feedmill vs. Mitra Pinasthika Mustika | Malindo Feedmill vs. Jakarta Int Hotels | Malindo Feedmill vs. Indosterling Technomedia 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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