Correlation Between Mitrabara Adiperdana and Karya Bersama
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Karya Bersama 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 Karya Bersama 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 Karya Bersama Anugerah, you can compare the effects of market volatilities on Mitrabara Adiperdana and Karya Bersama 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 Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Karya Bersama.
Diversification Opportunities for Mitrabara Adiperdana and Karya Bersama
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabara and Karya is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah 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 Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Karya Bersama go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Karya Bersama
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Karya Bersama. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabara Adiperdana PT is 2.08 times less risky than Karya Bersama. The stock trades about -0.12 of its potential returns per unit of risk. The Karya Bersama Anugerah is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Karya Bersama Anugerah on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Karya Bersama Anugerah or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Karya Bersama Anugerah
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Karya Bersama Anugerah |
Mitrabara Adiperdana and Karya Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Karya Bersama
The main advantage of trading using opposite Mitrabara Adiperdana and Karya Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Karya Bersama 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 Karya Bersama will offset losses from the drop in Karya Bersama'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 |
| Karya Bersama vs. Royalindo Investa Wijaya | Karya Bersama vs. Mitrabara Adiperdana PT | Karya Bersama vs. PT Multi Garam | Karya Bersama vs. Bank Ina Perdana |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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