Correlation Between Mitra Keluarga and Citra Marga
Can any of the company-specific risk be diversified away by investing in both Mitra Keluarga and Citra Marga 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 Mitra Keluarga and Citra Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitra Keluarga Karyasehat and Citra Marga Nusaphala, you can compare the effects of market volatilities on Mitra Keluarga and Citra Marga 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 Mitra Keluarga with a short position of Citra Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Keluarga and Citra Marga.
Diversification Opportunities for Mitra Keluarga and Citra Marga
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and Citra is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Keluarga Karyasehat and Citra Marga Nusaphala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Marga Nusaphala and Mitra Keluarga 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 Mitra Keluarga Karyasehat are associated (or correlated) with Citra Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Marga Nusaphala has no effect on the direction of Mitra Keluarga i.e., Mitra Keluarga and Citra Marga go up and down completely randomly.
Pair Corralation between Mitra Keluarga and Citra Marga
Assuming the 90 days trading horizon Mitra Keluarga Karyasehat is expected to under-perform the Citra Marga. In addition to that, Mitra Keluarga is 3.36 times more volatile than Citra Marga Nusaphala. It trades about -0.19 of its total potential returns per unit of risk. Citra Marga Nusaphala is currently generating about -0.11 per unit of volatility. If you would invest 144,000 in Citra Marga Nusaphala on August 28, 2024 and sell it today you would lose (2,000) from holding Citra Marga Nusaphala or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Keluarga Karyasehat vs. Citra Marga Nusaphala
Performance |
| Timeline |
| Mitra Keluarga Karyasehat |
| Citra Marga Nusaphala |
Mitra Keluarga and Citra Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Keluarga and Citra Marga
The main advantage of trading using opposite Mitra Keluarga and Citra Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Keluarga position performs unexpectedly, Citra Marga 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 Citra Marga will offset losses from the drop in Citra Marga's long position.| Mitra Keluarga vs. Astra Graphia Tbk | Mitra Keluarga vs. Hexindo Adiperkasa Tbk | Mitra Keluarga vs. Lautan Luas Tbk | Mitra Keluarga vs. Citra Marga Nusaphala |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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