Correlation Between Mitrabara Adiperdana and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid Jaya, you can compare the effects of market volatilities on Mitrabara Adiperdana and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Hotel Sahid.
Diversification Opportunities for Mitrabara Adiperdana and Hotel Sahid
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabara and Hotel is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Hotel Sahid go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Hotel Sahid
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Hotel Sahid. In addition to that, Mitrabara Adiperdana is 1.02 times more volatile than Hotel Sahid Jaya. It trades about -0.16 of its total potential returns per unit of risk. Hotel Sahid Jaya is currently generating about -0.01 per unit of volatility. If you would invest 94,000 in Hotel Sahid Jaya on September 19, 2024 and sell it today you would lose (500.00) from holding Hotel Sahid Jaya or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Hotel Sahid Jaya |
Mitrabara Adiperdana and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Hotel Sahid
The main advantage of trading using opposite Mitrabara Adiperdana and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid's long position.| Mitrabara Adiperdana vs. Harum Energy Tbk | Mitrabara Adiperdana vs. Delta Dunia Makmur | Mitrabara Adiperdana vs. Adi Sarana Armada | Mitrabara Adiperdana vs. Elang Mahkota Teknologi |
| Hotel Sahid vs. Pembangunan Graha Lestari | Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Mitrabara Adiperdana PT | Hotel Sahid vs. PT Multi Garam |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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