Correlation Between Digital Mediatama and Mitra Adiperkasa
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and Mitra Adiperkasa 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 Digital Mediatama and Mitra Adiperkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Mediatama Maxima and Mitra Adiperkasa Tbk, you can compare the effects of market volatilities on Digital Mediatama and Mitra Adiperkasa 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 Digital Mediatama with a short position of Mitra Adiperkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and Mitra Adiperkasa.
Diversification Opportunities for Digital Mediatama and Mitra Adiperkasa
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digital and Mitra is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and Mitra Adiperkasa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Adiperkasa Tbk and Digital Mediatama 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 Digital Mediatama Maxima are associated (or correlated) with Mitra Adiperkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Adiperkasa Tbk has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and Mitra Adiperkasa go up and down completely randomly.
Pair Corralation between Digital Mediatama and Mitra Adiperkasa
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to under-perform the Mitra Adiperkasa. In addition to that, Digital Mediatama is 2.49 times more volatile than Mitra Adiperkasa Tbk. It trades about -0.06 of its total potential returns per unit of risk. Mitra Adiperkasa Tbk is currently generating about -0.09 per unit of volatility. If you would invest 134,500 in Mitra Adiperkasa Tbk on November 4, 2024 and sell it today you would lose (4,000) from holding Mitra Adiperkasa Tbk or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Mediatama Maxima vs. Mitra Adiperkasa Tbk
Performance |
| Timeline |
| Digital Mediatama Maxima |
| Mitra Adiperkasa Tbk |
Digital Mediatama and Mitra Adiperkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and Mitra Adiperkasa
The main advantage of trading using opposite Digital Mediatama and Mitra Adiperkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, Mitra Adiperkasa 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 Adiperkasa will offset losses from the drop in Mitra Adiperkasa's long position.| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti |
| Mitra Adiperkasa vs. Ramayana Lestari Sentosa | Mitra Adiperkasa vs. Ace Hardware Indonesia | Mitra Adiperkasa vs. Summarecon Agung Tbk | Mitra Adiperkasa vs. Media Nusantara Citra |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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