Correlation Between PT Charlie and Menthobi Karyatama
Can any of the company-specific risk be diversified away by investing in both PT Charlie and Menthobi Karyatama 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 Charlie and Menthobi Karyatama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Charlie Hospital and Menthobi Karyatama Raya, you can compare the effects of market volatilities on PT Charlie and Menthobi Karyatama 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 Charlie with a short position of Menthobi Karyatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Charlie and Menthobi Karyatama.
Diversification Opportunities for PT Charlie and Menthobi Karyatama
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RSCH and Menthobi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PT Charlie Hospital and Menthobi Karyatama Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menthobi Karyatama Raya and PT Charlie 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 Charlie Hospital are associated (or correlated) with Menthobi Karyatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menthobi Karyatama Raya has no effect on the direction of PT Charlie i.e., PT Charlie and Menthobi Karyatama go up and down completely randomly.
Pair Corralation between PT Charlie and Menthobi Karyatama
Assuming the 90 days trading horizon PT Charlie Hospital is expected to under-perform the Menthobi Karyatama. In addition to that, PT Charlie is 1.73 times more volatile than Menthobi Karyatama Raya. It trades about -0.2 of its total potential returns per unit of risk. Menthobi Karyatama Raya is currently generating about -0.02 per unit of volatility. If you would invest 12,200 in Menthobi Karyatama Raya on September 12, 2024 and sell it today you would lose (100.00) from holding Menthobi Karyatama Raya or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Charlie Hospital vs. Menthobi Karyatama Raya
Performance |
| Timeline |
| PT Charlie Hospital |
| Menthobi Karyatama Raya |
PT Charlie and Menthobi Karyatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Charlie and Menthobi Karyatama
The main advantage of trading using opposite PT Charlie and Menthobi Karyatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Charlie position performs unexpectedly, Menthobi Karyatama 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 Menthobi Karyatama will offset losses from the drop in Menthobi Karyatama's long position.| PT Charlie vs. Bank Central Asia | PT Charlie vs. Bank Rakyat Indonesia | PT Charlie vs. Bayan Resources Tbk | PT Charlie vs. Bank Mandiri Persero |
| Menthobi Karyatama vs. Mahkota Group Tbk | Menthobi Karyatama vs. Palma Serasih PT | Menthobi Karyatama vs. Cisadane Sawit Raya | Menthobi Karyatama vs. Diamond Food Indonesia |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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