Correlation Between Fortune Mate and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Fortune Mate 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 Fortune Mate and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Mate Indonesia and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Fortune Mate 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 Fortune Mate with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Mate and Mitra Pinasthika.
Diversification Opportunities for Fortune Mate and Mitra Pinasthika
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortune and Mitra is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Mate Indonesia 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 Fortune Mate 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 Fortune Mate Indonesia 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 Fortune Mate i.e., Fortune Mate and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Fortune Mate and Mitra Pinasthika
Assuming the 90 days trading horizon Fortune Mate Indonesia is expected to generate 20.49 times more return on investment than Mitra Pinasthika. However, Fortune Mate is 20.49 times more volatile than Mitra Pinasthika Mustika. It trades about 0.43 of its potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about -0.28 per unit of risk. If you would invest 23,800 in Fortune Mate Indonesia on August 31, 2024 and sell it today you would earn a total of 30,700 from holding Fortune Mate Indonesia or generate 128.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortune Mate Indonesia vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Fortune Mate Indonesia |
| Mitra Pinasthika Mustika |
Fortune Mate and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Mate and Mitra Pinasthika
The main advantage of trading using opposite Fortune Mate and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Mate 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.| Fortune Mate vs. Lippo Cikarang Tbk | Fortune Mate vs. Bekasi Asri Pemula | Fortune Mate vs. Mitra Pinasthika Mustika | Fortune Mate vs. Jakarta Int Hotels |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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