Correlation Between Gozco Plantations and Mitra Angkasa
Can any of the company-specific risk be diversified away by investing in both Gozco Plantations and Mitra Angkasa 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 Gozco Plantations and Mitra Angkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gozco Plantations Tbk and Mitra Angkasa Sejahtera, you can compare the effects of market volatilities on Gozco Plantations and Mitra Angkasa 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 Gozco Plantations with a short position of Mitra Angkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gozco Plantations and Mitra Angkasa.
Diversification Opportunities for Gozco Plantations and Mitra Angkasa
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gozco and Mitra is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gozco Plantations Tbk and Mitra Angkasa Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Angkasa Sejahtera and Gozco Plantations 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 Gozco Plantations Tbk are associated (or correlated) with Mitra Angkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Angkasa Sejahtera has no effect on the direction of Gozco Plantations i.e., Gozco Plantations and Mitra Angkasa go up and down completely randomly.
Pair Corralation between Gozco Plantations and Mitra Angkasa
Assuming the 90 days trading horizon Gozco Plantations Tbk is expected to under-perform the Mitra Angkasa. But the stock apears to be less risky and, when comparing its historical volatility, Gozco Plantations Tbk is 1.7 times less risky than Mitra Angkasa. The stock trades about -0.03 of its potential returns per unit of risk. The Mitra Angkasa Sejahtera is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,700 in Mitra Angkasa Sejahtera on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Mitra Angkasa Sejahtera or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gozco Plantations Tbk vs. Mitra Angkasa Sejahtera
Performance |
| Timeline |
| Gozco Plantations Tbk |
| Mitra Angkasa Sejahtera |
Gozco Plantations and Mitra Angkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gozco Plantations and Mitra Angkasa
The main advantage of trading using opposite Gozco Plantations and Mitra Angkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gozco Plantations position performs unexpectedly, Mitra Angkasa 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 Angkasa will offset losses from the drop in Mitra Angkasa's long position.| Gozco Plantations vs. Sampoerna Agro Tbk | Gozco Plantations vs. Tunas Baru Lampung | Gozco Plantations vs. Bakrie Sumatera Plantations | Gozco Plantations vs. Bisi International Tbk |
| Mitra Angkasa vs. Autopedia Sukses Lestari | Mitra Angkasa vs. Net Visi Media | Mitra Angkasa vs. Adaro Minerals Indonesia | Mitra Angkasa vs. Caturkarda Depo Bangunan |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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