Correlation Between Mitrabara Adiperdana and PT MNC
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and PT MNC 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 PT MNC 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 PT MNC Energy, you can compare the effects of market volatilities on Mitrabara Adiperdana and PT MNC 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 PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and PT MNC.
Diversification Opportunities for Mitrabara Adiperdana and PT MNC
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitrabara and IATA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy 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 PT MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and PT MNC go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and PT MNC
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the PT MNC. In addition to that, Mitrabara Adiperdana is 1.47 times more volatile than PT MNC Energy. It trades about -0.49 of its total potential returns per unit of risk. PT MNC Energy is currently generating about 0.0 per unit of volatility. If you would invest 4,900 in PT MNC Energy on November 4, 2024 and sell it today you would earn a total of 0.00 from holding PT MNC Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. PT MNC Energy
Performance |
| Timeline |
| Mitrabara Adiperdana |
| PT MNC Energy |
Mitrabara Adiperdana and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and PT MNC
The main advantage of trading using opposite Mitrabara Adiperdana and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, PT MNC 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 PT MNC will offset losses from the drop in PT MNC'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 |
| PT MNC vs. Mnc Investama Tbk | PT MNC vs. Exploitasi Energi Indonesia | PT MNC vs. Smartfren Telecom Tbk | PT MNC vs. Humpuss Intermoda Transportasi |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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