Correlation Between Pt Pakuan and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Pt Pakuan and Imago Mulia 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 Pakuan and Imago Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pakuan Tbk and Imago Mulia Persada, you can compare the effects of market volatilities on Pt Pakuan and Imago Mulia 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 Pakuan with a short position of Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pakuan and Imago Mulia.
Diversification Opportunities for Pt Pakuan and Imago Mulia
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UANG and Imago is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pakuan Tbk and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada and Pt Pakuan 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 Pakuan Tbk are associated (or correlated) with Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Pt Pakuan i.e., Pt Pakuan and Imago Mulia go up and down completely randomly.
Pair Corralation between Pt Pakuan and Imago Mulia
Assuming the 90 days trading horizon Pt Pakuan Tbk is expected to under-perform the Imago Mulia. In addition to that, Pt Pakuan is 1.1 times more volatile than Imago Mulia Persada. It trades about -0.44 of its total potential returns per unit of risk. Imago Mulia Persada is currently generating about 0.3 per unit of volatility. If you would invest 8,100 in Imago Mulia Persada on October 25, 2024 and sell it today you would earn a total of 2,100 from holding Imago Mulia Persada or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pt Pakuan Tbk vs. Imago Mulia Persada
Performance |
| Timeline |
| Pt Pakuan Tbk |
| Imago Mulia Persada |
Pt Pakuan and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pakuan and Imago Mulia
The main advantage of trading using opposite Pt Pakuan and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pakuan position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia's long position.| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
| Imago Mulia vs. Pt Pradiksi Gunatama | Imago Mulia vs. Sunindo Adipersada Tbk | Imago Mulia vs. Pt Pakuan Tbk | Imago Mulia vs. Integra Indocabinet 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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