Correlation Between Putra Mandiri and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Putra Mandiri and Hotel Sahid 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 Putra Mandiri and Hotel Sahid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Mandiri Jembar and Hotel Sahid Jaya, you can compare the effects of market volatilities on Putra Mandiri and Hotel Sahid 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 Putra Mandiri with a short position of Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Mandiri and Hotel Sahid.
Diversification Opportunities for Putra Mandiri and Hotel Sahid
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putra and Hotel is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Putra Mandiri Jembar and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya and Putra Mandiri 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 Putra Mandiri Jembar are associated (or correlated) with Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Putra Mandiri i.e., Putra Mandiri and Hotel Sahid go up and down completely randomly.
Pair Corralation between Putra Mandiri and Hotel Sahid
Assuming the 90 days trading horizon Putra Mandiri Jembar is expected to under-perform the Hotel Sahid. But the stock apears to be less risky and, when comparing its historical volatility, Putra Mandiri Jembar is 3.15 times less risky than Hotel Sahid. The stock trades about -0.03 of its potential returns per unit of risk. The Hotel Sahid Jaya is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 95,000 in Hotel Sahid Jaya on December 3, 2024 and sell it today you would lose (14,000) from holding Hotel Sahid Jaya or give up 14.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.31% |
Values | Daily Returns |
Putra Mandiri Jembar vs. Hotel Sahid Jaya
Performance |
Timeline |
Putra Mandiri Jembar |
Hotel Sahid Jaya |
Putra Mandiri and Hotel Sahid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putra Mandiri and Hotel Sahid
The main advantage of trading using opposite Putra Mandiri and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Mandiri position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid's long position.Putra Mandiri vs. Uni Charm Indonesia | Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Kencana Energi Lestari | Putra Mandiri vs. Bintang Oto Global |
Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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