Correlation Between Protech Mitra and Pelayaran Nelly
Can any of the company-specific risk be diversified away by investing in both Protech Mitra and Pelayaran Nelly 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 Protech Mitra and Pelayaran Nelly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protech Mitra Perkasa and Pelayaran Nelly Dwi, you can compare the effects of market volatilities on Protech Mitra and Pelayaran Nelly 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 Protech Mitra with a short position of Pelayaran Nelly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protech Mitra and Pelayaran Nelly.
Diversification Opportunities for Protech Mitra and Pelayaran Nelly
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Protech and Pelayaran is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Protech Mitra Perkasa and Pelayaran Nelly Dwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Nelly Dwi and Protech Mitra 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 Protech Mitra Perkasa are associated (or correlated) with Pelayaran Nelly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Nelly Dwi has no effect on the direction of Protech Mitra i.e., Protech Mitra and Pelayaran Nelly go up and down completely randomly.
Pair Corralation between Protech Mitra and Pelayaran Nelly
Assuming the 90 days trading horizon Protech Mitra Perkasa is expected to under-perform the Pelayaran Nelly. In addition to that, Protech Mitra is 2.11 times more volatile than Pelayaran Nelly Dwi. It trades about -0.02 of its total potential returns per unit of risk. Pelayaran Nelly Dwi is currently generating about 0.06 per unit of volatility. If you would invest 26,426 in Pelayaran Nelly Dwi on August 24, 2024 and sell it today you would earn a total of 19,774 from holding Pelayaran Nelly Dwi or generate 74.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Protech Mitra Perkasa vs. Pelayaran Nelly Dwi
Performance |
| Timeline |
| Protech Mitra Perkasa |
| Pelayaran Nelly Dwi |
Protech Mitra and Pelayaran Nelly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protech Mitra and Pelayaran Nelly
The main advantage of trading using opposite Protech Mitra and Pelayaran Nelly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protech Mitra position performs unexpectedly, Pelayaran Nelly 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 Pelayaran Nelly will offset losses from the drop in Pelayaran Nelly's long position.| Protech Mitra vs. Pelayaran Nelly Dwi | Protech Mitra vs. Trans Power Marine | Protech Mitra vs. Sidomulyo Selaras Tbk | Protech Mitra vs. Bali Towerindo Sentra |
| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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