Correlation Between Pollux Properti and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Pollux Properti and Mega Manunggal 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 Properti and Mega Manunggal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Properti Indonesia and Mega Manunggal Property, you can compare the effects of market volatilities on Pollux Properti and Mega Manunggal 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 Properti with a short position of Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Properti and Mega Manunggal.
Diversification Opportunities for Pollux Properti and Mega Manunggal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pollux and Mega is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Properti Indonesia and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property and Pollux Properti 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 Properti Indonesia are associated (or correlated) with Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Pollux Properti i.e., Pollux Properti and Mega Manunggal go up and down completely randomly.
Pair Corralation between Pollux Properti and Mega Manunggal
Assuming the 90 days trading horizon Pollux Properti Indonesia is expected to under-perform the Mega Manunggal. But the stock apears to be less risky and, when comparing its historical volatility, Pollux Properti Indonesia is 2.11 times less risky than Mega Manunggal. The stock trades about -0.03 of its potential returns per unit of risk. The Mega Manunggal Property is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 33,600 in Mega Manunggal Property on September 1, 2024 and sell it today you would earn a total of 15,200 from holding Mega Manunggal Property or generate 45.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pollux Properti Indonesia vs. Mega Manunggal Property
Performance |
| Timeline |
| Pollux Properti Indonesia |
| Mega Manunggal Property |
Pollux Properti and Mega Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pollux Properti and Mega Manunggal
The main advantage of trading using opposite Pollux Properti and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Properti position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal's long position.| Pollux Properti vs. Transcoal Pacific Tbk | Pollux Properti vs. Medikaloka Hermina PT | Pollux Properti vs. Maha Properti Indonesia | Pollux Properti vs. Jaya Sukses Makmur |
| Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan Land 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |