Correlation Between Baramulti Suksessarana and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Baramulti Suksessarana 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 Baramulti Suksessarana and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baramulti Suksessarana Tbk and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Baramulti Suksessarana 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 Baramulti Suksessarana with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baramulti Suksessarana and Mitra Pinasthika.
Diversification Opportunities for Baramulti Suksessarana and Mitra Pinasthika
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baramulti and Mitra is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Baramulti Suksessarana Tbk 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 Baramulti Suksessarana 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 Baramulti Suksessarana Tbk 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 Baramulti Suksessarana i.e., Baramulti Suksessarana and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Baramulti Suksessarana and Mitra Pinasthika
Assuming the 90 days trading horizon Baramulti Suksessarana Tbk is expected to generate 1.21 times more return on investment than Mitra Pinasthika. However, Baramulti Suksessarana is 1.21 times more volatile than Mitra Pinasthika Mustika. It trades about 0.06 of its potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.03 per unit of risk. If you would invest 276,671 in Baramulti Suksessarana Tbk on August 30, 2024 and sell it today you would earn a total of 144,329 from holding Baramulti Suksessarana Tbk or generate 52.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baramulti Suksessarana Tbk vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Baramulti Suksessarana |
| Mitra Pinasthika Mustika |
Baramulti Suksessarana and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baramulti Suksessarana and Mitra Pinasthika
The main advantage of trading using opposite Baramulti Suksessarana and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baramulti Suksessarana 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.| Baramulti Suksessarana vs. Mitrabara Adiperdana PT | Baramulti Suksessarana vs. Bayan Resources Tbk | Baramulti Suksessarana vs. Abm Investama Tbk | Baramulti Suksessarana vs. TBS Energi Utama |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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