Correlation Between Putra Mandiri and Palma Serasih
Can any of the company-specific risk be diversified away by investing in both Putra Mandiri and Palma Serasih 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 Putra Mandiri and Palma Serasih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Mandiri Jembar and Palma Serasih PT, you can compare the effects of market volatilities on Putra Mandiri and Palma Serasih 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 Putra Mandiri with a short position of Palma Serasih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Mandiri and Palma Serasih.
Diversification Opportunities for Putra Mandiri and Palma Serasih
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Putra and Palma is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Putra Mandiri Jembar and Palma Serasih PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palma Serasih PT and Putra Mandiri 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 Putra Mandiri Jembar are associated (or correlated) with Palma Serasih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palma Serasih PT has no effect on the direction of Putra Mandiri i.e., Putra Mandiri and Palma Serasih go up and down completely randomly.
Pair Corralation between Putra Mandiri and Palma Serasih
Assuming the 90 days trading horizon Putra Mandiri is expected to generate 11.77 times less return on investment than Palma Serasih. But when comparing it to its historical volatility, Putra Mandiri Jembar is 1.13 times less risky than Palma Serasih. It trades about 0.01 of its potential returns per unit of risk. Palma Serasih PT is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 19,300 in Palma Serasih PT on November 4, 2024 and sell it today you would earn a total of 500.00 from holding Palma Serasih PT or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putra Mandiri Jembar vs. Palma Serasih PT
Performance |
| Timeline |
| Putra Mandiri Jembar |
| Palma Serasih PT |
Putra Mandiri and Palma Serasih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Mandiri and Palma Serasih
The main advantage of trading using opposite Putra Mandiri and Palma Serasih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Mandiri position performs unexpectedly, Palma Serasih 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 Palma Serasih will offset losses from the drop in Palma Serasih's long position.| Putra Mandiri vs. Uni Charm Indonesia | Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Kencana Energi Lestari | Putra Mandiri vs. Bintang Oto Global |
| Palma Serasih vs. Mahkota Group Tbk | Palma Serasih vs. Provident Agro Tbk | Palma Serasih vs. Putra Mandiri Jembar | Palma Serasih vs. Cisadane Sawit Raya |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |