Correlation Between MAP Aktif and Mitra Adiperkasa
Can any of the company-specific risk be diversified away by investing in both MAP Aktif and Mitra Adiperkasa 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 MAP Aktif and Mitra Adiperkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAP Aktif Adiperkasa and Mitra Adiperkasa Tbk, you can compare the effects of market volatilities on MAP Aktif and Mitra Adiperkasa 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 MAP Aktif with a short position of Mitra Adiperkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAP Aktif and Mitra Adiperkasa.
Diversification Opportunities for MAP Aktif and Mitra Adiperkasa
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAP and Mitra is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MAP Aktif Adiperkasa and Mitra Adiperkasa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Adiperkasa Tbk and MAP Aktif 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 MAP Aktif Adiperkasa are associated (or correlated) with Mitra Adiperkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Adiperkasa Tbk has no effect on the direction of MAP Aktif i.e., MAP Aktif and Mitra Adiperkasa go up and down completely randomly.
Pair Corralation between MAP Aktif and Mitra Adiperkasa
Assuming the 90 days trading horizon MAP Aktif Adiperkasa is expected to generate 1.0 times more return on investment than Mitra Adiperkasa. However, MAP Aktif is 1.0 times more volatile than Mitra Adiperkasa Tbk. It trades about 0.08 of its potential returns per unit of risk. Mitra Adiperkasa Tbk is currently generating about 0.05 per unit of risk. If you would invest 78,463 in MAP Aktif Adiperkasa on August 25, 2024 and sell it today you would earn a total of 22,537 from holding MAP Aktif Adiperkasa or generate 28.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAP Aktif Adiperkasa vs. Mitra Adiperkasa Tbk
Performance |
| Timeline |
| MAP Aktif Adiperkasa |
| Mitra Adiperkasa Tbk |
MAP Aktif and Mitra Adiperkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAP Aktif and Mitra Adiperkasa
The main advantage of trading using opposite MAP Aktif and Mitra Adiperkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAP Aktif position performs unexpectedly, Mitra Adiperkasa 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 Adiperkasa will offset losses from the drop in Mitra Adiperkasa's long position.| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
| Mitra Adiperkasa vs. Ramayana Lestari Sentosa | Mitra Adiperkasa vs. Ace Hardware Indonesia | Mitra Adiperkasa vs. Summarecon Agung Tbk | Mitra Adiperkasa vs. Media Nusantara Citra |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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