Correlation Between PT Pelayaran and MAP Aktif
Can any of the company-specific risk be diversified away by investing in both PT Pelayaran and MAP Aktif 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 Pelayaran and MAP Aktif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Pelayaran Tamarin and MAP Aktif Adiperkasa, you can compare the effects of market volatilities on PT Pelayaran and MAP Aktif 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 Pelayaran with a short position of MAP Aktif. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Pelayaran and MAP Aktif.
Diversification Opportunities for PT Pelayaran and MAP Aktif
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TAMU and MAP is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding PT Pelayaran Tamarin and MAP Aktif Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAP Aktif Adiperkasa and PT Pelayaran 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 Pelayaran Tamarin are associated (or correlated) with MAP Aktif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAP Aktif Adiperkasa has no effect on the direction of PT Pelayaran i.e., PT Pelayaran and MAP Aktif go up and down completely randomly.
Pair Corralation between PT Pelayaran and MAP Aktif
Assuming the 90 days trading horizon PT Pelayaran Tamarin is expected to under-perform the MAP Aktif. In addition to that, PT Pelayaran is 1.16 times more volatile than MAP Aktif Adiperkasa. It trades about -0.17 of its total potential returns per unit of risk. MAP Aktif Adiperkasa is currently generating about 0.15 per unit of volatility. If you would invest 89,500 in MAP Aktif Adiperkasa on August 25, 2024 and sell it today you would earn a total of 11,500 from holding MAP Aktif Adiperkasa or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Pelayaran Tamarin vs. MAP Aktif Adiperkasa
Performance |
| Timeline |
| PT Pelayaran Tamarin |
| MAP Aktif Adiperkasa |
PT Pelayaran and MAP Aktif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Pelayaran and MAP Aktif
The main advantage of trading using opposite PT Pelayaran and MAP Aktif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Pelayaran position performs unexpectedly, MAP Aktif 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 MAP Aktif will offset losses from the drop in MAP Aktif's long position.| PT Pelayaran vs. Lion Metal Works | PT Pelayaran vs. Communication Cable Systems | PT Pelayaran vs. PT Indofood Sukses | PT Pelayaran vs. PT Charlie Hospital |
| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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