Correlation Between Puradelta Lestari and Mitrabara Adiperdana
Can any of the company-specific risk be diversified away by investing in both Puradelta Lestari and Mitrabara Adiperdana 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 Puradelta Lestari and Mitrabara Adiperdana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puradelta Lestari PT and Mitrabara Adiperdana PT, you can compare the effects of market volatilities on Puradelta Lestari and Mitrabara Adiperdana 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 Puradelta Lestari with a short position of Mitrabara Adiperdana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puradelta Lestari and Mitrabara Adiperdana.
Diversification Opportunities for Puradelta Lestari and Mitrabara Adiperdana
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Puradelta and Mitrabara is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Puradelta Lestari PT and Mitrabara Adiperdana PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabara Adiperdana and Puradelta Lestari 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 Puradelta Lestari PT are associated (or correlated) with Mitrabara Adiperdana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabara Adiperdana has no effect on the direction of Puradelta Lestari i.e., Puradelta Lestari and Mitrabara Adiperdana go up and down completely randomly.
Pair Corralation between Puradelta Lestari and Mitrabara Adiperdana
Assuming the 90 days trading horizon Puradelta Lestari PT is expected to generate 0.51 times more return on investment than Mitrabara Adiperdana. However, Puradelta Lestari PT is 1.98 times less risky than Mitrabara Adiperdana. It trades about 0.02 of its potential returns per unit of risk. Mitrabara Adiperdana PT is currently generating about -0.05 per unit of risk. If you would invest 14,983 in Puradelta Lestari PT on August 31, 2024 and sell it today you would earn a total of 1,017 from holding Puradelta Lestari PT or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Puradelta Lestari PT vs. Mitrabara Adiperdana PT
Performance |
| Timeline |
| Puradelta Lestari |
| Mitrabara Adiperdana |
Puradelta Lestari and Mitrabara Adiperdana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puradelta Lestari and Mitrabara Adiperdana
The main advantage of trading using opposite Puradelta Lestari and Mitrabara Adiperdana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puradelta Lestari position performs unexpectedly, Mitrabara Adiperdana 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 Mitrabara Adiperdana will offset losses from the drop in Mitrabara Adiperdana's long position.| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
| Mitrabara Adiperdana vs. Baramulti Suksessarana Tbk | Mitrabara Adiperdana vs. Samindo Resources Tbk | Mitrabara Adiperdana vs. Hexindo Adiperkasa Tbk | Mitrabara Adiperdana vs. Mitra Pinasthika Mustika |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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