Correlation Between Mitra Adiperkasa and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both Mitra Adiperkasa and Pembangunan Graha 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 Pembangunan Graha 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 Pembangunan Graha Lestari, you can compare the effects of market volatilities on Mitra Adiperkasa and Pembangunan Graha 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 Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Adiperkasa and Pembangunan Graha.
Diversification Opportunities for Mitra Adiperkasa and Pembangunan Graha
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitra and Pembangunan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Adiperkasa Tbk and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari 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 Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of Mitra Adiperkasa i.e., Mitra Adiperkasa and Pembangunan Graha go up and down completely randomly.
Pair Corralation between Mitra Adiperkasa and Pembangunan Graha
Assuming the 90 days trading horizon Mitra Adiperkasa Tbk is expected to generate 1.14 times more return on investment than Pembangunan Graha. However, Mitra Adiperkasa is 1.14 times more volatile than Pembangunan Graha Lestari. It trades about -0.07 of its potential returns per unit of risk. Pembangunan Graha Lestari is currently generating about -0.16 per unit of risk. If you would invest 145,000 in Mitra Adiperkasa Tbk on September 19, 2024 and sell it today you would lose (9,000) from holding Mitra Adiperkasa Tbk or give up 6.21% 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. Pembangunan Graha Lestari
Performance |
| Timeline |
| Mitra Adiperkasa Tbk |
| Pembangunan Graha Lestari |
Mitra Adiperkasa and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Adiperkasa and Pembangunan Graha
The main advantage of trading using opposite Mitra Adiperkasa and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Adiperkasa position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha's long position.| Mitra Adiperkasa vs. Pembangunan Graha Lestari | Mitra Adiperkasa vs. Pembangunan Jaya Ancol | Mitra Adiperkasa vs. Hotel Sahid Jaya | Mitra Adiperkasa vs. Mitrabara Adiperdana PT |
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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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