Correlation Between Pollux Investasi and Metropolitan Kentjana
Can any of the company-specific risk be diversified away by investing in both Pollux Investasi and Metropolitan Kentjana 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 Pollux Investasi and Metropolitan Kentjana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Investasi Internasional and Metropolitan Kentjana Tbk, you can compare the effects of market volatilities on Pollux Investasi and Metropolitan Kentjana 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 Pollux Investasi with a short position of Metropolitan Kentjana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Investasi and Metropolitan Kentjana.
Diversification Opportunities for Pollux Investasi and Metropolitan Kentjana
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pollux and Metropolitan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Investasi Internasional and Metropolitan Kentjana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Kentjana Tbk and Pollux Investasi 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 Pollux Investasi Internasional are associated (or correlated) with Metropolitan Kentjana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan Kentjana Tbk has no effect on the direction of Pollux Investasi i.e., Pollux Investasi and Metropolitan Kentjana go up and down completely randomly.
Pair Corralation between Pollux Investasi and Metropolitan Kentjana
Assuming the 90 days trading horizon Pollux Investasi Internasional is expected to under-perform the Metropolitan Kentjana. In addition to that, Pollux Investasi is 1.69 times more volatile than Metropolitan Kentjana Tbk. It trades about -0.34 of its total potential returns per unit of risk. Metropolitan Kentjana Tbk is currently generating about -0.25 per unit of volatility. If you would invest 2,670,000 in Metropolitan Kentjana Tbk on August 29, 2024 and sell it today you would lose (182,500) from holding Metropolitan Kentjana Tbk or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pollux Investasi Internasional vs. Metropolitan Kentjana Tbk
Performance |
| Timeline |
| Pollux Investasi Int |
| Metropolitan Kentjana Tbk |
Pollux Investasi and Metropolitan Kentjana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pollux Investasi and Metropolitan Kentjana
The main advantage of trading using opposite Pollux Investasi and Metropolitan Kentjana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Investasi position performs unexpectedly, Metropolitan Kentjana 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 Metropolitan Kentjana will offset losses from the drop in Metropolitan Kentjana's long position.| Pollux Investasi vs. Jaya Sukses Makmur | Pollux Investasi vs. Modernland Realty Ltd | Pollux Investasi vs. Suryamas Dutamakmur Tbk | Pollux Investasi vs. Natura City Developments |
| Metropolitan Kentjana vs. Jaya Real Property | Metropolitan Kentjana vs. Metropolitan Land Tbk | Metropolitan Kentjana vs. Duta Pertiwi Tbk | Metropolitan Kentjana vs. Indonesia Prima Property |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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