Correlation Between Mitrabara Adiperdana and Cikarang Listrindo
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Cikarang Listrindo 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 Cikarang Listrindo 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 Cikarang Listrindo Tbk, you can compare the effects of market volatilities on Mitrabara Adiperdana and Cikarang Listrindo 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 Cikarang Listrindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Cikarang Listrindo.
Diversification Opportunities for Mitrabara Adiperdana and Cikarang Listrindo
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabara and Cikarang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Cikarang Listrindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cikarang Listrindo 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 Cikarang Listrindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cikarang Listrindo Tbk has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Cikarang Listrindo go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Cikarang Listrindo
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Cikarang Listrindo. In addition to that, Mitrabara Adiperdana is 2.25 times more volatile than Cikarang Listrindo Tbk. It trades about -0.09 of its total potential returns per unit of risk. Cikarang Listrindo Tbk is currently generating about 0.05 per unit of volatility. If you would invest 55,093 in Cikarang Listrindo Tbk on November 19, 2024 and sell it today you would earn a total of 11,907 from holding Cikarang Listrindo Tbk or generate 21.61% 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. Cikarang Listrindo Tbk
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Cikarang Listrindo Tbk |
Mitrabara Adiperdana and Cikarang Listrindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Cikarang Listrindo
The main advantage of trading using opposite Mitrabara Adiperdana and Cikarang Listrindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Cikarang Listrindo 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 Cikarang Listrindo will offset losses from the drop in Cikarang Listrindo'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 |
| Cikarang Listrindo vs. Puradelta Lestari PT | Cikarang Listrindo vs. Mitra Pinasthika Mustika | Cikarang Listrindo vs. Wijaya Karya Bangunan | Cikarang Listrindo vs. PT Sarana Menara |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |