Correlation Between Mitra Adiperkasa and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Mitra Adiperkasa and Japfa Comfeed 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 Mitra Adiperkasa and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitra Adiperkasa Tbk and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Mitra Adiperkasa and Japfa Comfeed 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 Mitra Adiperkasa with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Adiperkasa and Japfa Comfeed.
Diversification Opportunities for Mitra Adiperkasa and Japfa Comfeed
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitra and Japfa is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Adiperkasa Tbk and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia and Mitra Adiperkasa 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 Mitra Adiperkasa Tbk are associated (or correlated) with Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Mitra Adiperkasa i.e., Mitra Adiperkasa and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Mitra Adiperkasa and Japfa Comfeed
Assuming the 90 days trading horizon Mitra Adiperkasa Tbk is expected to generate 1.82 times more return on investment than Japfa Comfeed. However, Mitra Adiperkasa is 1.82 times more volatile than Japfa Comfeed Indonesia. It trades about 0.01 of its potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about -0.15 per unit of risk. If you would invest 158,000 in Mitra Adiperkasa Tbk on September 1, 2024 and sell it today you would lose (500.00) from holding Mitra Adiperkasa Tbk or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Adiperkasa Tbk vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Mitra Adiperkasa Tbk |
| Japfa Comfeed Indonesia |
Mitra Adiperkasa and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Adiperkasa and Japfa Comfeed
The main advantage of trading using opposite Mitra Adiperkasa and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Adiperkasa position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| Mitra Adiperkasa vs. Japfa Comfeed Indonesia | Mitra Adiperkasa vs. Charoen Pokphand Indonesia | Mitra Adiperkasa vs. Erajaya Swasembada Tbk | Mitra Adiperkasa vs. Indofood Cbp Sukses |
| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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