Correlation Between PT Astra and MCAN Mortgage
Can any of the company-specific risk be diversified away by investing in both PT Astra and MCAN Mortgage 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 Astra and MCAN Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Astra International and MCAN Mortgage, you can compare the effects of market volatilities on PT Astra and MCAN Mortgage 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 Astra with a short position of MCAN Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Astra and MCAN Mortgage.
Diversification Opportunities for PT Astra and MCAN Mortgage
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PTAIF and MCAN is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PT Astra International and MCAN Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCAN Mortgage and PT Astra 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 Astra International are associated (or correlated) with MCAN Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCAN Mortgage has no effect on the direction of PT Astra i.e., PT Astra and MCAN Mortgage go up and down completely randomly.
Pair Corralation between PT Astra and MCAN Mortgage
If you would invest 1,356 in MCAN Mortgage on September 4, 2024 and sell it today you would earn a total of 39.00 from holding MCAN Mortgage or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Astra International vs. MCAN Mortgage
Performance |
| Timeline |
| PT Astra International |
| MCAN Mortgage |
PT Astra and MCAN Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Astra and MCAN Mortgage
The main advantage of trading using opposite PT Astra and MCAN Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Astra position performs unexpectedly, MCAN Mortgage 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 MCAN Mortgage will offset losses from the drop in MCAN Mortgage's long position.| PT Astra vs. Allison Transmission Holdings | PT Astra vs. Luminar Technologies | PT Astra vs. Quantumscape Corp | PT Astra vs. Lear Corporation |
| MCAN Mortgage vs. Western Asset Global | MCAN Mortgage vs. Invesco Trust For | MCAN Mortgage vs. Logan Ridge Finance | MCAN Mortgage vs. Invesco Advantage MIT |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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