Correlation Between Mitra Adiperkasa and MAP Aktif
Can any of the company-specific risk be diversified away by investing in both Mitra Adiperkasa and MAP Aktif 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 MAP Aktif 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 MAP Aktif Adiperkasa, you can compare the effects of market volatilities on Mitra Adiperkasa and MAP Aktif 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 MAP Aktif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Adiperkasa and MAP Aktif.
Diversification Opportunities for Mitra Adiperkasa and MAP Aktif
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitra and MAP is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Adiperkasa Tbk and MAP Aktif Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAP Aktif Adiperkasa 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 MAP Aktif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAP Aktif Adiperkasa has no effect on the direction of Mitra Adiperkasa i.e., Mitra Adiperkasa and MAP Aktif go up and down completely randomly.
Pair Corralation between Mitra Adiperkasa and MAP Aktif
Assuming the 90 days trading horizon Mitra Adiperkasa is expected to generate 12.76 times less return on investment than MAP Aktif. In addition to that, Mitra Adiperkasa is 1.04 times more volatile than MAP Aktif Adiperkasa. It trades about 0.01 of its total potential returns per unit of risk. MAP Aktif Adiperkasa is currently generating about 0.11 per unit of volatility. If you would invest 83,500 in MAP Aktif Adiperkasa on August 29, 2024 and sell it today you would earn a total of 17,000 from holding MAP Aktif Adiperkasa or generate 20.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Adiperkasa Tbk vs. MAP Aktif Adiperkasa
Performance |
| Timeline |
| Mitra Adiperkasa Tbk |
| MAP Aktif Adiperkasa |
Mitra Adiperkasa and MAP Aktif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Adiperkasa and MAP Aktif
The main advantage of trading using opposite Mitra Adiperkasa and MAP Aktif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Adiperkasa position performs unexpectedly, MAP Aktif 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 MAP Aktif will offset losses from the drop in MAP Aktif's long position.| Mitra Adiperkasa vs. Ramayana Lestari Sentosa | Mitra Adiperkasa vs. Ace Hardware Indonesia | Mitra Adiperkasa vs. Summarecon Agung Tbk | Mitra Adiperkasa vs. Media Nusantara Citra |
| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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