Correlation Between Rukun Raharja and Mark Dynamics
Can any of the company-specific risk be diversified away by investing in both Rukun Raharja and Mark Dynamics 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 Rukun Raharja and Mark Dynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rukun Raharja Tbk and Mark Dynamics Indonesia, you can compare the effects of market volatilities on Rukun Raharja and Mark Dynamics 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 Rukun Raharja with a short position of Mark Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rukun Raharja and Mark Dynamics.
Diversification Opportunities for Rukun Raharja and Mark Dynamics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rukun and Mark is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Rukun Raharja Tbk and Mark Dynamics Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mark Dynamics Indonesia and Rukun Raharja 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 Rukun Raharja Tbk are associated (or correlated) with Mark Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mark Dynamics Indonesia has no effect on the direction of Rukun Raharja i.e., Rukun Raharja and Mark Dynamics go up and down completely randomly.
Pair Corralation between Rukun Raharja and Mark Dynamics
Assuming the 90 days trading horizon Rukun Raharja Tbk is expected to generate 1.74 times more return on investment than Mark Dynamics. However, Rukun Raharja is 1.74 times more volatile than Mark Dynamics Indonesia. It trades about 0.05 of its potential returns per unit of risk. Mark Dynamics Indonesia is currently generating about 0.04 per unit of risk. If you would invest 92,582 in Rukun Raharja Tbk on January 18, 2025 and sell it today you would earn a total of 90,918 from holding Rukun Raharja Tbk or generate 98.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Rukun Raharja Tbk vs. Mark Dynamics Indonesia
Performance |
| Timeline |
| Rukun Raharja Tbk |
| Mark Dynamics Indonesia |
Rukun Raharja and Mark Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rukun Raharja and Mark Dynamics
The main advantage of trading using opposite Rukun Raharja and Mark Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rukun Raharja position performs unexpectedly, Mark Dynamics 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 Mark Dynamics will offset losses from the drop in Mark Dynamics' long position.| Rukun Raharja vs. Perusahaan Gas Negara | Rukun Raharja vs. Aneka Tambang Persero | Rukun Raharja vs. United Tractors Tbk | Rukun Raharja vs. Jakarta Int Hotels |
| Mark Dynamics vs. Prodia Widyahusada Tbk | Mark Dynamics vs. Panca Budi Idaman | Mark Dynamics vs. Medikaloka Hermina PT | Mark Dynamics vs. Arwana Citramulia 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |