Correlation Between Mitra Keluarga and Merdeka Copper
Can any of the company-specific risk be diversified away by investing in both Mitra Keluarga and Merdeka Copper 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 Merdeka Copper 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 Merdeka Copper Gold, you can compare the effects of market volatilities on Mitra Keluarga and Merdeka Copper 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 Merdeka Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Keluarga and Merdeka Copper.
Diversification Opportunities for Mitra Keluarga and Merdeka Copper
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and Merdeka is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Keluarga Karyasehat and Merdeka Copper Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merdeka Copper Gold 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 Merdeka Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merdeka Copper Gold has no effect on the direction of Mitra Keluarga i.e., Mitra Keluarga and Merdeka Copper go up and down completely randomly.
Pair Corralation between Mitra Keluarga and Merdeka Copper
Assuming the 90 days trading horizon Mitra Keluarga Karyasehat is expected to under-perform the Merdeka Copper. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Keluarga Karyasehat is 1.93 times less risky than Merdeka Copper. The stock trades about -0.11 of its potential returns per unit of risk. The Merdeka Copper Gold is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 159,500 in Merdeka Copper Gold on November 3, 2024 and sell it today you would lose (3,000) from holding Merdeka Copper Gold or give up 1.88% 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. Merdeka Copper Gold
Performance |
| Timeline |
| Mitra Keluarga Karyasehat |
| Merdeka Copper Gold |
Mitra Keluarga and Merdeka Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Keluarga and Merdeka Copper
The main advantage of trading using opposite Mitra Keluarga and Merdeka Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Keluarga position performs unexpectedly, Merdeka Copper 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 Merdeka Copper will offset losses from the drop in Merdeka Copper's long position.| Mitra Keluarga vs. Merdeka Copper Gold | Mitra Keluarga vs. Tower Bersama Infrastructure | Mitra Keluarga vs. Erajaya Swasembada Tbk | Mitra Keluarga vs. Surya Citra Media |
| Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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