Correlation Between Mitrabara Adiperdana and Arthavest Tbk
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Arthavest Tbk 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 Mitrabara Adiperdana and Arthavest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitrabara Adiperdana PT and Arthavest Tbk, you can compare the effects of market volatilities on Mitrabara Adiperdana and Arthavest Tbk 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 Mitrabara Adiperdana with a short position of Arthavest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Arthavest Tbk.
Diversification Opportunities for Mitrabara Adiperdana and Arthavest Tbk
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mitrabara and Arthavest is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Arthavest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arthavest Tbk and Mitrabara Adiperdana 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 Mitrabara Adiperdana PT are associated (or correlated) with Arthavest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arthavest Tbk has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Arthavest Tbk go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Arthavest Tbk
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Arthavest Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabara Adiperdana PT is 1.03 times less risky than Arthavest Tbk. The stock trades about -0.06 of its potential returns per unit of risk. The Arthavest Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 218,093 in Arthavest Tbk on October 7, 2024 and sell it today you would earn a total of 12,907 from holding Arthavest Tbk or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Arthavest Tbk
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Arthavest Tbk |
Mitrabara Adiperdana and Arthavest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Arthavest Tbk
The main advantage of trading using opposite Mitrabara Adiperdana and Arthavest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Arthavest Tbk 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 Arthavest Tbk will offset losses from the drop in Arthavest Tbk's long position.| Mitrabara Adiperdana vs. Baramulti Suksessarana Tbk | Mitrabara Adiperdana vs. Samindo Resources Tbk | Mitrabara Adiperdana vs. Hexindo Adiperkasa Tbk | Mitrabara Adiperdana vs. Mitra Pinasthika Mustika |
| Arthavest Tbk vs. Asuransi Bintang Tbk | Arthavest Tbk vs. Pacific Strategic Financial | Arthavest Tbk vs. Maming Enam Sembilan | Arthavest Tbk vs. Asuransi Harta Aman |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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