Correlation Between Ace Oldfields and Mitra Angkasa
Can any of the company-specific risk be diversified away by investing in both Ace Oldfields 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 Ace Oldfields and Mitra Angkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ace Oldfields PT and Mitra Angkasa Sejahtera, you can compare the effects of market volatilities on Ace Oldfields 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 Ace Oldfields with a short position of Mitra Angkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ace Oldfields and Mitra Angkasa.
Diversification Opportunities for Ace Oldfields and Mitra Angkasa
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ace and Mitra is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ace Oldfields PT 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 Ace Oldfields 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 Ace Oldfields PT 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 Ace Oldfields i.e., Ace Oldfields and Mitra Angkasa go up and down completely randomly.
Pair Corralation between Ace Oldfields and Mitra Angkasa
Assuming the 90 days trading horizon Ace Oldfields is expected to generate 14.42 times less return on investment than Mitra Angkasa. But when comparing it to its historical volatility, Ace Oldfields PT is 3.0 times less risky than Mitra Angkasa. It trades about 0.01 of its potential returns per unit of risk. Mitra Angkasa Sejahtera is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Mitra Angkasa Sejahtera on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Mitra Angkasa Sejahtera or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ace Oldfields PT vs. Mitra Angkasa Sejahtera
Performance |
| Timeline |
| Ace Oldfields PT |
| Mitra Angkasa Sejahtera |
Ace Oldfields and Mitra Angkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ace Oldfields and Mitra Angkasa
The main advantage of trading using opposite Ace Oldfields and Mitra Angkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ace Oldfields 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.| Ace Oldfields vs. Ladangbaja Murni PT | Ace Oldfields vs. PT Hasnur Internasional | Ace Oldfields vs. Geoprima Solusi Tbk | Ace Oldfields vs. Prima Andalan Mandiri |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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