Correlation Between Panca Budi and Map Boga
Can any of the company-specific risk be diversified away by investing in both Panca Budi and Map Boga 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 Panca Budi and Map Boga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Budi Idaman and Map Boga Adiperkasa, you can compare the effects of market volatilities on Panca Budi and Map Boga 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 Panca Budi with a short position of Map Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Budi and Map Boga.
Diversification Opportunities for Panca Budi and Map Boga
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panca and Map is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Panca Budi Idaman and Map Boga Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Map Boga Adiperkasa and Panca Budi 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 Panca Budi Idaman are associated (or correlated) with Map Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Map Boga Adiperkasa has no effect on the direction of Panca Budi i.e., Panca Budi and Map Boga go up and down completely randomly.
Pair Corralation between Panca Budi and Map Boga
Assuming the 90 days trading horizon Panca Budi Idaman is expected to generate 0.93 times more return on investment than Map Boga. However, Panca Budi Idaman is 1.08 times less risky than Map Boga. It trades about 0.13 of its potential returns per unit of risk. Map Boga Adiperkasa is currently generating about -0.26 per unit of risk. If you would invest 45,800 in Panca Budi Idaman on August 28, 2024 and sell it today you would earn a total of 6,200 from holding Panca Budi Idaman or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Budi Idaman vs. Map Boga Adiperkasa
Performance |
| Timeline |
| Panca Budi Idaman |
| Map Boga Adiperkasa |
Panca Budi and Map Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Budi and Map Boga
The main advantage of trading using opposite Panca Budi and Map Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Budi position performs unexpectedly, Map Boga 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 Map Boga will offset losses from the drop in Map Boga's long position.| Panca Budi vs. Mitrabara Adiperdana PT | Panca Budi vs. Mark Dynamics Indonesia | Panca Budi vs. Prodia Widyahusada Tbk | Panca Budi vs. Selamat Sempurna Tbk |
| Map Boga vs. MAP Aktif Adiperkasa | Map Boga vs. Fast Food Indonesia | Map Boga vs. PT Sarimelati Kencana | Map Boga vs. Prodia Widyahusada 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |