Correlation Between PT Pelayaran and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both PT Pelayaran 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 PT Pelayaran and Mitrabahtera Segara 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 Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on PT Pelayaran 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 PT Pelayaran with a short position of Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Pelayaran and Mitrabahtera Segara.
Diversification Opportunities for PT Pelayaran and Mitrabahtera Segara
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAMU and Mitrabahtera is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PT Pelayaran Tamarin and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara 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 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 PT Pelayaran i.e., PT Pelayaran and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between PT Pelayaran and Mitrabahtera Segara
Assuming the 90 days trading horizon PT Pelayaran Tamarin is expected to under-perform the Mitrabahtera Segara. In addition to that, PT Pelayaran is 2.35 times more volatile than Mitrabahtera Segara Sejati. It trades about -0.02 of its total potential returns per unit of risk. Mitrabahtera Segara Sejati is currently generating about 0.0 per unit of volatility. If you would invest 119,000 in Mitrabahtera Segara Sejati on September 3, 2024 and sell it today you would lose (17,500) from holding Mitrabahtera Segara Sejati or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Pelayaran Tamarin vs. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| PT Pelayaran Tamarin |
| Mitrabahtera Segara |
PT Pelayaran and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Pelayaran and Mitrabahtera Segara
The main advantage of trading using opposite PT Pelayaran and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Pelayaran 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.| PT Pelayaran vs. Dharma Polimetal Tbk | PT Pelayaran vs. Trinitan Metals and | PT Pelayaran vs. Indosterling Technomedia Tbk | PT Pelayaran vs. Era Media Sejahtera |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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