Correlation Between PT MNC and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both PT MNC and Mitra Keluarga 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 PT MNC and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT MNC Energy and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on PT MNC and Mitra Keluarga 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 PT MNC with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT MNC and Mitra Keluarga.
Diversification Opportunities for PT MNC and Mitra Keluarga
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IATA and Mitra is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PT MNC Energy and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and PT MNC 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 PT MNC Energy are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of PT MNC i.e., PT MNC and Mitra Keluarga go up and down completely randomly.
Pair Corralation between PT MNC and Mitra Keluarga
Assuming the 90 days trading horizon PT MNC Energy is expected to generate 1.68 times more return on investment than Mitra Keluarga. However, PT MNC is 1.68 times more volatile than Mitra Keluarga Karyasehat. It trades about 0.01 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.01 per unit of risk. If you would invest 5,100 in PT MNC Energy on October 25, 2024 and sell it today you would lose (300.00) from holding PT MNC Energy or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT MNC Energy vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| PT MNC Energy |
| Mitra Keluarga Karyasehat |
PT MNC and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT MNC and Mitra Keluarga
The main advantage of trading using opposite PT MNC and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT MNC position performs unexpectedly, Mitra Keluarga 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 Keluarga will offset losses from the drop in Mitra Keluarga's long position.| PT MNC vs. Mnc Investama Tbk | PT MNC vs. Exploitasi Energi Indonesia | PT MNC vs. Smartfren Telecom Tbk | PT MNC vs. Humpuss Intermoda Transportasi |
| Mitra Keluarga vs. Merdeka Copper Gold | Mitra Keluarga vs. Tower Bersama Infrastructure | Mitra Keluarga vs. Erajaya Swasembada Tbk | Mitra Keluarga vs. Surya Citra Media |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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