Correlation Between Mitrabara Adiperdana and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Citatah 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 Citatah 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 Citatah Tbk, you can compare the effects of market volatilities on Mitrabara Adiperdana and Citatah 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Citatah Tbk.
Diversification Opportunities for Mitrabara Adiperdana and Citatah Tbk
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitrabara and Citatah is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Citatah Tbk go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Citatah Tbk
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Citatah Tbk. In addition to that, Mitrabara Adiperdana is 1.81 times more volatile than Citatah Tbk. It trades about -0.61 of its total potential returns per unit of risk. Citatah Tbk is currently generating about -0.11 per unit of volatility. If you would invest 2,700 in Citatah Tbk on December 6, 2024 and sell it today you would lose (100.00) from holding Citatah Tbk or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Citatah Tbk
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Citatah Tbk |
Mitrabara Adiperdana and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Citatah Tbk
The main advantage of trading using opposite Mitrabara Adiperdana and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Citatah 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 Citatah Tbk will offset losses from the drop in Citatah 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 |
| Citatah Tbk vs. Arkadia Digital Media | Citatah Tbk vs. City Retail Developments | Citatah Tbk vs. PT Hetzer Medical | Citatah Tbk vs. First Media Tbk |
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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