Correlation Between Slj Global and PT Mulia
Can any of the company-specific risk be diversified away by investing in both Slj Global and PT 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 Slj Global and PT Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slj Global Tbk and PT Mulia Industrindo, you can compare the effects of market volatilities on Slj Global and PT 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 Slj Global with a short position of PT Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slj Global and PT Mulia.
Diversification Opportunities for Slj Global and PT Mulia
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Slj and MLIA is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Slj Global Tbk and PT Mulia Industrindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mulia Industrindo and Slj Global 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 Slj Global Tbk are associated (or correlated) with PT Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mulia Industrindo has no effect on the direction of Slj Global i.e., Slj Global and PT Mulia go up and down completely randomly.
Pair Corralation between Slj Global and PT Mulia
Assuming the 90 days trading horizon Slj Global Tbk is expected to generate 2.91 times more return on investment than PT Mulia. However, Slj Global is 2.91 times more volatile than PT Mulia Industrindo. It trades about -0.01 of its potential returns per unit of risk. PT Mulia Industrindo is currently generating about -0.05 per unit of risk. If you would invest 16,700 in Slj Global Tbk on September 6, 2024 and sell it today you would lose (8,200) from holding Slj Global Tbk or give up 49.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Slj Global Tbk vs. PT Mulia Industrindo
Performance |
Timeline |
Slj Global Tbk |
PT Mulia Industrindo |
Slj Global and PT Mulia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Slj Global and PT Mulia
The main advantage of trading using opposite Slj Global and PT Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slj Global position performs unexpectedly, PT 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 PT Mulia will offset losses from the drop in PT Mulia's long position.Slj Global vs. Mitra Pinasthika Mustika | Slj Global vs. Jakarta Int Hotels | Slj Global vs. Asuransi Harta Aman | Slj Global vs. Indosterling Technomedia Tbk |
PT Mulia vs. Suparma Tbk | PT Mulia vs. Pelangi Indah Canindo | PT Mulia vs. Surya Toto Indonesia | PT Mulia vs. Lautan Luas 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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