Correlation Between Siantar Top and Mayora Indah
Can any of the company-specific risk be diversified away by investing in both Siantar Top and Mayora Indah 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 Siantar Top and Mayora Indah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siantar Top Tbk and Mayora Indah Tbk, you can compare the effects of market volatilities on Siantar Top and Mayora Indah 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 Siantar Top with a short position of Mayora Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siantar Top and Mayora Indah.
Diversification Opportunities for Siantar Top and Mayora Indah
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siantar and Mayora is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Siantar Top Tbk and Mayora Indah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayora Indah Tbk and Siantar Top 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 Siantar Top Tbk are associated (or correlated) with Mayora Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayora Indah Tbk has no effect on the direction of Siantar Top i.e., Siantar Top and Mayora Indah go up and down completely randomly.
Pair Corralation between Siantar Top and Mayora Indah
Assuming the 90 days trading horizon Siantar Top Tbk is expected to generate 1.75 times more return on investment than Mayora Indah. However, Siantar Top is 1.75 times more volatile than Mayora Indah Tbk. It trades about 0.05 of its potential returns per unit of risk. Mayora Indah Tbk is currently generating about 0.02 per unit of risk. If you would invest 750,000 in Siantar Top Tbk on September 2, 2024 and sell it today you would earn a total of 602,500 from holding Siantar Top Tbk or generate 80.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siantar Top Tbk vs. Mayora Indah Tbk
Performance |
| Timeline |
| Siantar Top Tbk |
| Mayora Indah Tbk |
Siantar Top and Mayora Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siantar Top and Mayora Indah
The main advantage of trading using opposite Siantar Top and Mayora Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siantar Top position performs unexpectedly, Mayora Indah 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 Mayora Indah will offset losses from the drop in Mayora Indah's long position.| Siantar Top vs. Sekar Laut Tbk | Siantar Top vs. Prasidha Aneka Niaga | Siantar Top vs. Mandom Indonesia Tbk | Siantar Top vs. Multi Bintang Indonesia |
| Mayora Indah vs. Bank BRISyariah Tbk | Mayora Indah vs. Mitra Pinasthika Mustika | Mayora Indah vs. Jakarta Int Hotels | Mayora Indah vs. Indosterling Technomedia 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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