Correlation Between PT TIMAH and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both PT TIMAH and Macmahon Holdings 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 PT TIMAH and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT TIMAH Tbk and Macmahon Holdings Limited, you can compare the effects of market volatilities on PT TIMAH and Macmahon Holdings 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 PT TIMAH with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT TIMAH and Macmahon Holdings.
Diversification Opportunities for PT TIMAH and Macmahon Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTTMF and Macmahon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT TIMAH Tbk and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and PT TIMAH 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 PT TIMAH Tbk are associated (or correlated) with Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of PT TIMAH i.e., PT TIMAH and Macmahon Holdings go up and down completely randomly.
Pair Corralation between PT TIMAH and Macmahon Holdings
If you would invest 26.00 in Macmahon Holdings Limited on August 16, 2025 and sell it today you would earn a total of 6.00 from holding Macmahon Holdings Limited or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PT TIMAH Tbk vs. Macmahon Holdings Limited
Performance |
| Timeline |
| PT TIMAH Tbk |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Macmahon Holdings |
PT TIMAH and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT TIMAH and Macmahon Holdings
The main advantage of trading using opposite PT TIMAH and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT TIMAH position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' long position.| PT TIMAH vs. Cerro de Pasco | PT TIMAH vs. Amarc Resources | PT TIMAH vs. American Rare Earths | PT TIMAH vs. Power Nickel |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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