Correlation Between Imago Mulia and Ulima Nitra

Can any of the company-specific risk be diversified away by investing in both Imago Mulia and Ulima Nitra 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 Imago Mulia and Ulima Nitra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Imago Mulia Persada and Ulima Nitra PT, you can compare the effects of market volatilities on Imago Mulia and Ulima Nitra 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 Imago Mulia with a short position of Ulima Nitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imago Mulia and Ulima Nitra.

Diversification Opportunities for Imago Mulia and Ulima Nitra

0.0

Correlation Coefficient

Imago Mulia  Ulima Nitra

Pay attention - limited upside

The 3 months correlation between Imago and Ulima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Imago Mulia Persada and Ulima Nitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ulima Nitra PT and Imago Mulia 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 Imago Mulia Persada are associated (or correlated) with Ulima Nitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ulima Nitra PT has no effect on the direction of Imago Mulia i.e., Imago Mulia and Ulima Nitra go up and down completely randomly.

Pair Corralation between Imago Mulia and Ulima Nitra

If you would invest (100.00) in Ulima Nitra PT on September 15, 2024 and sell it today you would earn a total of  100.00  from holding Ulima Nitra PT or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Imago Mulia Persada  vs.  Ulima Nitra PT

Imago Mulia Persada

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imago Mulia Persada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Ulima Nitra PT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ulima Nitra PT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Ulima Nitra is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Imago Mulia and Ulima Nitra

The main advantage of trading using opposite Imago Mulia and Ulima Nitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imago Mulia position performs unexpectedly, Ulima Nitra 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 Ulima Nitra will offset losses from the drop in Ulima Nitra's long position.

The idea behind Imago Mulia Persada and Ulima Nitra PT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.