Correlation Between Alam Sutera and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Alam Sutera and Mitra Pinasthika 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 Alam Sutera and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alam Sutera Realty and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Alam Sutera and Mitra Pinasthika 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 Alam Sutera with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alam Sutera and Mitra Pinasthika.
Diversification Opportunities for Alam Sutera and Mitra Pinasthika
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alam and Mitra is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Alam Sutera Realty and Mitra Pinasthika Mustika in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Pinasthika Mustika and Alam Sutera 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 Alam Sutera Realty are associated (or correlated) with Mitra Pinasthika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Pinasthika Mustika has no effect on the direction of Alam Sutera i.e., Alam Sutera and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Alam Sutera and Mitra Pinasthika
Assuming the 90 days trading horizon Alam Sutera is expected to generate 1.9 times less return on investment than Mitra Pinasthika. In addition to that, Alam Sutera is 1.89 times more volatile than Mitra Pinasthika Mustika. It trades about 0.01 of its total potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.02 per unit of volatility. If you would invest 89,607 in Mitra Pinasthika Mustika on September 3, 2024 and sell it today you would earn a total of 9,393 from holding Mitra Pinasthika Mustika or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alam Sutera Realty vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Alam Sutera Realty |
| Mitra Pinasthika Mustika |
Alam Sutera and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alam Sutera and Mitra Pinasthika
The main advantage of trading using opposite Alam Sutera and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alam Sutera position performs unexpectedly, Mitra Pinasthika 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 Mitra Pinasthika will offset losses from the drop in Mitra Pinasthika's long position.| Alam Sutera vs. Mitra Pinasthika Mustika | Alam Sutera vs. Jakarta Int Hotels | Alam Sutera vs. Asuransi Harta Aman | Alam Sutera vs. Indosterling Technomedia Tbk |
| Mitra Pinasthika vs. Saratoga Investama Sedaya | Mitra Pinasthika vs. Puradelta Lestari PT | Mitra Pinasthika vs. Cikarang Listrindo Tbk | Mitra Pinasthika vs. Erajaya Swasembada 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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