Correlation Between Mitrabara Adiperdana and Soechi Lines
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Soechi Lines 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 Soechi Lines 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 Soechi Lines Tbk, you can compare the effects of market volatilities on Mitrabara Adiperdana and Soechi Lines 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 Soechi Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Soechi Lines.
Diversification Opportunities for Mitrabara Adiperdana and Soechi Lines
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mitrabara and Soechi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Soechi Lines Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soechi Lines 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 Soechi Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soechi Lines Tbk has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Soechi Lines go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Soechi Lines
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Soechi Lines. But the stock apears to be less risky and, when comparing its historical volatility, Mitrabara Adiperdana PT is 1.05 times less risky than Soechi Lines. The stock trades about -0.24 of its potential returns per unit of risk. The Soechi Lines Tbk is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 17,600 in Soechi Lines Tbk on November 2, 2024 and sell it today you would lose (2,100) from holding Soechi Lines Tbk or give up 11.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.0% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Soechi Lines Tbk
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Soechi Lines Tbk |
Mitrabara Adiperdana and Soechi Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Soechi Lines
The main advantage of trading using opposite Mitrabara Adiperdana and Soechi Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Soechi Lines 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 Soechi Lines will offset losses from the drop in Soechi Lines' 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 |
| Soechi Lines vs. Samudera Indonesia Tbk | Soechi Lines vs. Buana Listya Tama | Soechi Lines vs. Mitrabahtera Segara Sejati | Soechi Lines vs. Bekasi Fajar Industrial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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