Correlation Between Indosat Tbk and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk 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 Indosat Tbk and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Indosat Tbk 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 Indosat Tbk with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Mitra Pinasthika.
Diversification Opportunities for Indosat Tbk and Mitra Pinasthika
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indosat and Mitra is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk 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 Indosat Tbk 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 Indosat Tbk 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 Indosat Tbk i.e., Indosat Tbk and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Indosat Tbk and Mitra Pinasthika
Assuming the 90 days trading horizon Indosat Tbk is expected to generate 7.21 times more return on investment than Mitra Pinasthika. However, Indosat Tbk is 7.21 times more volatile than Mitra Pinasthika Mustika. It trades about 0.02 of its potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about -0.25 per unit of risk. If you would invest 243,000 in Indosat Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Indosat Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Indosat Tbk |
| Mitra Pinasthika Mustika |
Indosat Tbk and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Mitra Pinasthika
The main advantage of trading using opposite Indosat Tbk and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk 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.| Indosat Tbk vs. Astra Agro Lestari | Indosat Tbk vs. Vale Indonesia Tbk | Indosat Tbk vs. Timah Persero Tbk | Indosat Tbk vs. Medco Energi Internasional |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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