Correlation Between Blue Bird and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Blue Bird and Mitra Keluarga 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 Blue Bird and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Bird Tbk and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Blue Bird and Mitra Keluarga 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 Blue Bird with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Bird and Mitra Keluarga.
Diversification Opportunities for Blue Bird and Mitra Keluarga
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Mitra is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Blue Bird Tbk and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and Blue Bird 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 Blue Bird Tbk are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Blue Bird i.e., Blue Bird and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Blue Bird and Mitra Keluarga
Assuming the 90 days trading horizon Blue Bird Tbk is expected to generate 0.98 times more return on investment than Mitra Keluarga. However, Blue Bird Tbk is 1.02 times less risky than Mitra Keluarga. It trades about 0.03 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about 0.0 per unit of risk. If you would invest 174,539 in Blue Bird Tbk on September 3, 2024 and sell it today you would earn a total of 14,961 from holding Blue Bird Tbk or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Bird Tbk vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Blue Bird Tbk |
| Mitra Keluarga Karyasehat |
Blue Bird and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Bird and Mitra Keluarga
The main advantage of trading using opposite Blue Bird and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Bird position performs unexpectedly, Mitra Keluarga 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 Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Blue Bird vs. Adi Sarana Armada | Blue Bird vs. Mitra Keluarga Karyasehat | Blue Bird vs. Matahari Department Store | Blue Bird vs. Soechi Lines Tbk |
| Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Mitra Pinasthika Mustika | Mitra Keluarga vs. Jakarta Int Hotels |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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