Correlation Between PT Barito and MOBILE FACTORY
Can any of the company-specific risk be diversified away by investing in both PT Barito and MOBILE FACTORY 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 Barito and MOBILE FACTORY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Barito Pacific and MOBILE FACTORY INC, you can compare the effects of market volatilities on PT Barito and MOBILE FACTORY 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 Barito with a short position of MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Barito and MOBILE FACTORY.
Diversification Opportunities for PT Barito and MOBILE FACTORY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OB8 and MOBILE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Barito Pacific and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY INC and PT Barito 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 Barito Pacific are associated (or correlated) with MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of PT Barito i.e., PT Barito and MOBILE FACTORY go up and down completely randomly.
Pair Corralation between PT Barito and MOBILE FACTORY
If you would invest 4.55 in PT Barito Pacific on November 3, 2024 and sell it today you would lose (0.05) from holding PT Barito Pacific or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
PT Barito Pacific vs. MOBILE FACTORY INC
Performance |
| Timeline |
| PT Barito Pacific |
| MOBILE FACTORY INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Barito and MOBILE FACTORY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Barito and MOBILE FACTORY
The main advantage of trading using opposite PT Barito and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Barito position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.| PT Barito vs. Japan Medical Dynamic | PT Barito vs. CREO MEDICAL GRP | PT Barito vs. Tsingtao Brewery | PT Barito vs. Merit Medical Systems |
| MOBILE FACTORY vs. American Public Education | MOBILE FACTORY vs. TOREX SEMICONDUCTOR LTD | MOBILE FACTORY vs. CHINA EDUCATION GROUP | MOBILE FACTORY vs. Grand Canyon Education |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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