Correlation Between Mitrabara Adiperdana and Pudjiadi Sons
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Pudjiadi Sons 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 Pudjiadi Sons 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 Pudjiadi Sons Tbk, you can compare the effects of market volatilities on Mitrabara Adiperdana and Pudjiadi Sons 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 Pudjiadi Sons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Pudjiadi Sons.
Diversification Opportunities for Mitrabara Adiperdana and Pudjiadi Sons
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitrabara and Pudjiadi is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Pudjiadi Sons Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pudjiadi Sons 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 Pudjiadi Sons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pudjiadi Sons Tbk has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Pudjiadi Sons go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Pudjiadi Sons
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Pudjiadi Sons. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabara Adiperdana PT is 6.58 times less risky than Pudjiadi Sons. The stock trades about -0.24 of its potential returns per unit of risk. The Pudjiadi Sons Tbk is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 45,400 in Pudjiadi Sons Tbk on September 13, 2024 and sell it today you would earn a total of 86,100 from holding Pudjiadi Sons Tbk or generate 189.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Pudjiadi Sons Tbk
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Pudjiadi Sons Tbk |
Mitrabara Adiperdana and Pudjiadi Sons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Pudjiadi Sons
The main advantage of trading using opposite Mitrabara Adiperdana and Pudjiadi Sons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Pudjiadi Sons 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 Pudjiadi Sons will offset losses from the drop in Pudjiadi Sons' 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 |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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