Correlation Between Duta Pertiwi and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Duta Pertiwi 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 Duta Pertiwi and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duta Pertiwi Tbk and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Duta Pertiwi 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 Duta Pertiwi with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Pertiwi and Mitra Pinasthika.
Diversification Opportunities for Duta Pertiwi and Mitra Pinasthika
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duta and Mitra is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Duta Pertiwi 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 Duta Pertiwi 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 Duta Pertiwi 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 Duta Pertiwi i.e., Duta Pertiwi and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Duta Pertiwi and Mitra Pinasthika
Assuming the 90 days trading horizon Duta Pertiwi Tbk is expected to under-perform the Mitra Pinasthika. In addition to that, Duta Pertiwi is 2.08 times more volatile than Mitra Pinasthika Mustika. It trades about -0.02 of its total potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.04 per unit of volatility. If you would invest 92,271 in Mitra Pinasthika Mustika on August 31, 2024 and sell it today you would earn a total of 7,229 from holding Mitra Pinasthika Mustika or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duta Pertiwi Tbk vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Duta Pertiwi Tbk |
| Mitra Pinasthika Mustika |
Duta Pertiwi and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duta Pertiwi and Mitra Pinasthika
The main advantage of trading using opposite Duta Pertiwi and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Pertiwi 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.| Duta Pertiwi vs. Lippo Cikarang Tbk | Duta Pertiwi vs. Lippo Karawaci Tbk | Duta Pertiwi vs. Intiland Development Tbk | Duta Pertiwi vs. Mitra Pinasthika Mustika |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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