Correlation Between Elang Mahkota and Mitrabara Adiperdana
Can any of the company-specific risk be diversified away by investing in both Elang Mahkota 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 Elang Mahkota and Mitrabara Adiperdana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elang Mahkota Teknologi and Mitrabara Adiperdana PT, you can compare the effects of market volatilities on Elang Mahkota 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 Elang Mahkota with a short position of Mitrabara Adiperdana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elang Mahkota and Mitrabara Adiperdana.
Diversification Opportunities for Elang Mahkota and Mitrabara Adiperdana
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elang and Mitrabara is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Elang Mahkota Teknologi and Mitrabara Adiperdana PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabara Adiperdana and Elang Mahkota 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 Elang Mahkota Teknologi 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 Elang Mahkota i.e., Elang Mahkota and Mitrabara Adiperdana go up and down completely randomly.
Pair Corralation between Elang Mahkota and Mitrabara Adiperdana
Assuming the 90 days trading horizon Elang Mahkota Teknologi is expected to generate 2.17 times more return on investment than Mitrabara Adiperdana. However, Elang Mahkota is 2.17 times more volatile than Mitrabara Adiperdana PT. It trades about 0.26 of its potential returns per unit of risk. Mitrabara Adiperdana PT is currently generating about -0.16 per unit of risk. If you would invest 46,000 in Elang Mahkota Teknologi on September 19, 2024 and sell it today you would earn a total of 9,500 from holding Elang Mahkota Teknologi or generate 20.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elang Mahkota Teknologi vs. Mitrabara Adiperdana PT
Performance |
| Timeline |
| Elang Mahkota Teknologi |
| Mitrabara Adiperdana |
Elang Mahkota and Mitrabara Adiperdana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elang Mahkota and Mitrabara Adiperdana
The main advantage of trading using opposite Elang Mahkota and Mitrabara Adiperdana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elang Mahkota 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.| Elang Mahkota vs. Mnc Land Tbk | Elang Mahkota vs. MNC Vision Networks | Elang Mahkota vs. Link Net Tbk | Elang Mahkota vs. Medikaloka Hermina PT |
| Mitrabara Adiperdana vs. Harum Energy Tbk | Mitrabara Adiperdana vs. Delta Dunia Makmur | Mitrabara Adiperdana vs. Adi Sarana Armada | Mitrabara Adiperdana vs. Elang Mahkota Teknologi |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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