Correlation Between Protech Mitra and Modern Internasional
Can any of the company-specific risk be diversified away by investing in both Protech Mitra and Modern Internasional 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 Protech Mitra and Modern Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protech Mitra Perkasa and Modern Internasional Tbk, you can compare the effects of market volatilities on Protech Mitra and Modern Internasional 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 Protech Mitra with a short position of Modern Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protech Mitra and Modern Internasional.
Diversification Opportunities for Protech Mitra and Modern Internasional
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Protech and Modern is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Protech Mitra Perkasa and Modern Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modern Internasional Tbk and Protech Mitra 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 Protech Mitra Perkasa are associated (or correlated) with Modern Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modern Internasional Tbk has no effect on the direction of Protech Mitra i.e., Protech Mitra and Modern Internasional go up and down completely randomly.
Pair Corralation between Protech Mitra and Modern Internasional
Assuming the 90 days trading horizon Protech Mitra Perkasa is expected to generate 0.75 times more return on investment than Modern Internasional. However, Protech Mitra Perkasa is 1.33 times less risky than Modern Internasional. It trades about -0.01 of its potential returns per unit of risk. Modern Internasional Tbk is currently generating about -0.02 per unit of risk. If you would invest 70,000 in Protech Mitra Perkasa on September 15, 2024 and sell it today you would lose (55,700) from holding Protech Mitra Perkasa or give up 79.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Protech Mitra Perkasa vs. Modern Internasional Tbk
Performance |
Timeline |
Protech Mitra Perkasa |
Modern Internasional Tbk |
Protech Mitra and Modern Internasional Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Protech Mitra and Modern Internasional
The main advantage of trading using opposite Protech Mitra and Modern Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protech Mitra position performs unexpectedly, Modern Internasional 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 Modern Internasional will offset losses from the drop in Modern Internasional's long position.Protech Mitra vs. Pelayaran Nelly Dwi | Protech Mitra vs. Trans Power Marine | Protech Mitra vs. Sidomulyo Selaras Tbk | Protech Mitra vs. Bali Towerindo Sentra |
Modern Internasional vs. Indonesian Tobacco Tbk | Modern Internasional vs. Bank Ocbc Nisp | Modern Internasional vs. Protech Mitra Perkasa | Modern Internasional vs. Wintermar Offshore Marine |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |