Correlation Between Panca Global and Merdeka Copper
Can any of the company-specific risk be diversified away by investing in both Panca Global and Merdeka Copper 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 Global and Merdeka Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Global Securities and Merdeka Copper Gold, you can compare the effects of market volatilities on Panca Global and Merdeka Copper 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 Global with a short position of Merdeka Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Global and Merdeka Copper.
Diversification Opportunities for Panca Global and Merdeka Copper
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panca and Merdeka is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Panca Global Securities and Merdeka Copper Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merdeka Copper Gold and Panca Global 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 Global Securities are associated (or correlated) with Merdeka Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merdeka Copper Gold has no effect on the direction of Panca Global i.e., Panca Global and Merdeka Copper go up and down completely randomly.
Pair Corralation between Panca Global and Merdeka Copper
Assuming the 90 days trading horizon Panca Global Securities is expected to generate 2.1 times more return on investment than Merdeka Copper. However, Panca Global is 2.1 times more volatile than Merdeka Copper Gold. It trades about 0.0 of its potential returns per unit of risk. Merdeka Copper Gold is currently generating about -0.03 per unit of risk. If you would invest 15,300 in Panca Global Securities on September 4, 2024 and sell it today you would lose (4,100) from holding Panca Global Securities or give up 26.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Global Securities vs. Merdeka Copper Gold
Performance |
| Timeline |
| Panca Global Securities |
| Merdeka Copper Gold |
Panca Global and Merdeka Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Global and Merdeka Copper
The main advantage of trading using opposite Panca Global and Merdeka Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Global position performs unexpectedly, Merdeka Copper 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 Merdeka Copper will offset losses from the drop in Merdeka Copper's long position.| Panca Global vs. Panin Sekuritas Tbk | Panca Global vs. Reliance Securities Tbk | Panca Global vs. Mandala Multifinance Tbk | Panca Global vs. Paninvest Tbk |
| Merdeka Copper vs. Timah Persero Tbk | Merdeka Copper vs. Semen Indonesia Persero | Merdeka Copper vs. Mitra Pinasthika Mustika | Merdeka Copper vs. Jakarta Int Hotels |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |