Correlation Between Ever Shine and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Ever Shine 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 Ever Shine and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ever Shine Textile and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Ever Shine 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 Ever Shine with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ever Shine and Mitra Pinasthika.
Diversification Opportunities for Ever Shine and Mitra Pinasthika
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ever and Mitra is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ever Shine Textile 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 Ever Shine 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 Ever Shine Textile 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 Ever Shine i.e., Ever Shine and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Ever Shine and Mitra Pinasthika
Assuming the 90 days trading horizon Ever Shine Textile is expected to generate 3.28 times more return on investment than Mitra Pinasthika. However, Ever Shine is 3.28 times more volatile than Mitra Pinasthika Mustika. It trades about 0.11 of its potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.06 per unit of risk. If you would invest 2,713 in Ever Shine Textile on September 4, 2024 and sell it today you would earn a total of 1,587 from holding Ever Shine Textile or generate 58.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ever Shine Textile vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Ever Shine Textile |
| Mitra Pinasthika Mustika |
Ever Shine and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ever Shine and Mitra Pinasthika
The main advantage of trading using opposite Ever Shine and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ever Shine 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.| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata Tbk |
| Mitra Pinasthika vs. Jakarta Int Hotels | Mitra Pinasthika vs. Asuransi Harta Aman | Mitra Pinasthika vs. Indosterling Technomedia Tbk | Mitra Pinasthika vs. Indosat 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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