Correlation Between Hotel Sahid and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Mitrabahtera Segara 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 Hotel Sahid and Mitrabahtera Segara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on Hotel Sahid and Mitrabahtera Segara 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 Hotel Sahid with a short position of Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Mitrabahtera Segara.
Diversification Opportunities for Hotel Sahid and Mitrabahtera Segara
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hotel and Mitrabahtera is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara and Hotel Sahid 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 Hotel Sahid Jaya are associated (or correlated) with Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between Hotel Sahid and Mitrabahtera Segara
Assuming the 90 days trading horizon Hotel Sahid Jaya is expected to under-perform the Mitrabahtera Segara. In addition to that, Hotel Sahid is 1.07 times more volatile than Mitrabahtera Segara Sejati. It trades about -0.01 of its total potential returns per unit of risk. Mitrabahtera Segara Sejati is currently generating about -0.01 per unit of volatility. If you would invest 106,500 in Mitrabahtera Segara Sejati on September 19, 2024 and sell it today you would lose (500.00) from holding Mitrabahtera Segara Sejati or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| Hotel Sahid Jaya |
| Mitrabahtera Segara |
Hotel Sahid and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Mitrabahtera Segara
The main advantage of trading using opposite Hotel Sahid and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara's long position.| Hotel Sahid vs. Pembangunan Graha Lestari | Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Mitrabara Adiperdana PT | Hotel Sahid vs. PT Multi Garam |
| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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.
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