Correlation Between Mitra Keluarga and J Resources
Can any of the company-specific risk be diversified away by investing in both Mitra Keluarga and J Resources 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 J Resources 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 J Resources Asia, you can compare the effects of market volatilities on Mitra Keluarga and J Resources 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 J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Keluarga and J Resources.
Diversification Opportunities for Mitra Keluarga and J Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitra and PSAB is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Keluarga Karyasehat and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia 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 J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of Mitra Keluarga i.e., Mitra Keluarga and J Resources go up and down completely randomly.
Pair Corralation between Mitra Keluarga and J Resources
Assuming the 90 days trading horizon Mitra Keluarga Karyasehat is expected to under-perform the J Resources. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Keluarga Karyasehat is 1.88 times less risky than J Resources. The stock trades about -0.19 of its potential returns per unit of risk. The J Resources Asia is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 32,800 in J Resources Asia on August 29, 2024 and sell it today you would lose (2,800) from holding J Resources Asia or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Keluarga Karyasehat vs. J Resources Asia
Performance |
| Timeline |
| Mitra Keluarga Karyasehat |
| J Resources Asia |
Mitra Keluarga and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Keluarga and J Resources
The main advantage of trading using opposite Mitra Keluarga and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Keluarga position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' 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 |
| J Resources vs. Kedaung Indah Can | J Resources vs. Langgeng Makmur Industri | J Resources vs. Kabelindo Murni Tbk | J Resources vs. Mustika Ratu Tbk |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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