Correlation Between Ateliers Mecaniques and Mahaka Radio

Can any of the company-specific risk be diversified away by investing in both Ateliers Mecaniques and Mahaka Radio 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 Ateliers Mecaniques and Mahaka Radio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ateliers Mecaniques DIndonesie and Mahaka Radio Integra, you can compare the effects of market volatilities on Ateliers Mecaniques and Mahaka Radio 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 Ateliers Mecaniques with a short position of Mahaka Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ateliers Mecaniques and Mahaka Radio.

Diversification Opportunities for Ateliers Mecaniques and Mahaka Radio

-0.38

Correlation Coefficient

Ateliers Mecaniques  Mahaka Radio

Very good diversification

The 3 months correlation between Ateliers and Mahaka is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ateliers Mecaniques DIndonesie and Mahaka Radio Integra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Radio Integra and Ateliers Mecaniques 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 Ateliers Mecaniques DIndonesie are associated (or correlated) with Mahaka Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Radio Integra has no effect on the direction of Ateliers Mecaniques i.e., Ateliers Mecaniques and Mahaka Radio go up and down completely randomly.

Pair Corralation between Ateliers Mecaniques and Mahaka Radio

Assuming the 90 days trading horizon Ateliers Mecaniques DIndonesie is expected to generate 0.73 times more return on investment than Mahaka Radio. However, Ateliers Mecaniques DIndonesie is 1.36 times less risky than Mahaka Radio. It trades about 0.14 of its potential returns per unit of risk. Mahaka Radio Integra is currently generating about -0.35 per unit of risk. If you would invest  12,635  in Ateliers Mecaniques DIndonesie on April 25, 2025 and sell it today you would earn a total of  2,965  from holding Ateliers Mecaniques DIndonesie or generate 23.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ateliers Mecaniques DIndonesie  vs.  Mahaka Radio Integra

Ateliers Mecaniques

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ateliers Mecaniques DIndonesie are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Ateliers Mecaniques disclosed solid returns over the last few months and may actually be approaching a breakup point.

Mahaka Radio Integra

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mahaka Radio Integra has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Ateliers Mecaniques and Mahaka Radio

The main advantage of trading using opposite Ateliers Mecaniques and Mahaka Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ateliers Mecaniques position performs unexpectedly, Mahaka Radio 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 Mahaka Radio will offset losses from the drop in Mahaka Radio's long position.

The idea behind Ateliers Mecaniques DIndonesie and Mahaka Radio Integra pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.