Correlation Between Putra Mandiri and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Putra Mandiri and Pt Pakuan 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 Pt Pakuan 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 Pt Pakuan Tbk, you can compare the effects of market volatilities on Putra Mandiri and Pt Pakuan 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 Pt Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Mandiri and Pt Pakuan.
Diversification Opportunities for Putra Mandiri and Pt Pakuan
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putra and UANG is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Putra Mandiri Jembar and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan Tbk 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 Pt Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Putra Mandiri i.e., Putra Mandiri and Pt Pakuan go up and down completely randomly.
Pair Corralation between Putra Mandiri and Pt Pakuan
Assuming the 90 days trading horizon Putra Mandiri Jembar is expected to generate 0.7 times more return on investment than Pt Pakuan. However, Putra Mandiri Jembar is 1.44 times less risky than Pt Pakuan. It trades about -0.03 of its potential returns per unit of risk. Pt Pakuan Tbk is currently generating about -0.25 per unit of risk. If you would invest 12,200 in Putra Mandiri Jembar on December 3, 2024 and sell it today you would lose (700.00) from holding Putra Mandiri Jembar or give up 5.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Putra Mandiri Jembar vs. Pt Pakuan Tbk
Performance |
Timeline |
Putra Mandiri Jembar |
Pt Pakuan Tbk |
Putra Mandiri and Pt Pakuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putra Mandiri and Pt Pakuan
The main advantage of trading using opposite Putra Mandiri and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Mandiri position performs unexpectedly, Pt Pakuan 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 Pt Pakuan will offset losses from the drop in Pt Pakuan'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 |
Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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