Correlation Between Pt Pradiksi and Mahkota Group
Can any of the company-specific risk be diversified away by investing in both Pt Pradiksi and Mahkota Group 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 Pradiksi and Mahkota Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pradiksi Gunatama and Mahkota Group Tbk, you can compare the effects of market volatilities on Pt Pradiksi and Mahkota Group 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 Pradiksi with a short position of Mahkota Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pradiksi and Mahkota Group.
Diversification Opportunities for Pt Pradiksi and Mahkota Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PGUN and Mahkota is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pradiksi Gunatama and Mahkota Group Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahkota Group Tbk and Pt Pradiksi 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 Pradiksi Gunatama are associated (or correlated) with Mahkota Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahkota Group Tbk has no effect on the direction of Pt Pradiksi i.e., Pt Pradiksi and Mahkota Group go up and down completely randomly.
Pair Corralation between Pt Pradiksi and Mahkota Group
Assuming the 90 days trading horizon Pt Pradiksi Gunatama is expected to generate 1.56 times more return on investment than Mahkota Group. However, Pt Pradiksi is 1.56 times more volatile than Mahkota Group Tbk. It trades about 0.23 of its potential returns per unit of risk. Mahkota Group Tbk is currently generating about -0.06 per unit of risk. If you would invest 42,400 in Pt Pradiksi Gunatama on October 26, 2024 and sell it today you would earn a total of 13,600 from holding Pt Pradiksi Gunatama or generate 32.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Pt Pradiksi Gunatama vs. Mahkota Group Tbk
Performance |
| Timeline |
| Pt Pradiksi Gunatama |
| Mahkota Group Tbk |
Pt Pradiksi and Mahkota Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pradiksi and Mahkota Group
The main advantage of trading using opposite Pt Pradiksi and Mahkota Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pradiksi position performs unexpectedly, Mahkota Group 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 Mahkota Group will offset losses from the drop in Mahkota Group's long position.| Pt Pradiksi vs. Mahkota Group Tbk | Pt Pradiksi vs. Palma Serasih PT | Pt Pradiksi vs. Cisadane Sawit Raya | Pt Pradiksi vs. Diamond Food Indonesia |
| Mahkota Group vs. Austindo Nusantara Jaya | Mahkota Group vs. Garudafood Putra Putri | Mahkota Group vs. Provident Agro Tbk | Mahkota Group vs. Dharma Satya Nusantara |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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