Correlation Between Ultra Jaya and Matahari Department
Can any of the company-specific risk be diversified away by investing in both Ultra Jaya and Matahari Department 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 Ultra Jaya and Matahari Department into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Jaya Milk and Matahari Department Store, you can compare the effects of market volatilities on Ultra Jaya and Matahari Department 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 Ultra Jaya with a short position of Matahari Department. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Jaya and Matahari Department.
Diversification Opportunities for Ultra Jaya and Matahari Department
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ultra and Matahari is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Jaya Milk and Matahari Department Store in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matahari Department Store and Ultra Jaya 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 Ultra Jaya Milk are associated (or correlated) with Matahari Department. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matahari Department Store has no effect on the direction of Ultra Jaya i.e., Ultra Jaya and Matahari Department go up and down completely randomly.
Pair Corralation between Ultra Jaya and Matahari Department
Assuming the 90 days trading horizon Ultra Jaya Milk is expected to generate 0.77 times more return on investment than Matahari Department. However, Ultra Jaya Milk is 1.3 times less risky than Matahari Department. It trades about 0.02 of its potential returns per unit of risk. Matahari Department Store is currently generating about -0.07 per unit of risk. If you would invest 144,496 in Ultra Jaya Milk on November 5, 2024 and sell it today you would earn a total of 12,004 from holding Ultra Jaya Milk or generate 8.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Ultra Jaya Milk vs. Matahari Department Store
Performance |
Timeline |
Ultra Jaya Milk |
Matahari Department Store |
Ultra Jaya and Matahari Department Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ultra Jaya and Matahari Department
The main advantage of trading using opposite Ultra Jaya and Matahari Department positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Jaya position performs unexpectedly, Matahari Department 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 Matahari Department will offset losses from the drop in Matahari Department's long position.Ultra Jaya vs. Mayora Indah Tbk | Ultra Jaya vs. Sido Muncul PT | Ultra Jaya vs. Indofood Cbp Sukses | Ultra Jaya vs. Ace Hardware Indonesia |
Matahari Department vs. Surya Citra Media | Matahari Department vs. Akr Corporindo Tbk | Matahari Department vs. Media Nusantara Citra | Matahari Department vs. Pembangunan Perumahan 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |