Correlation Between Mitra Pinasthika and Ace Hardware
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Ace Hardware 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 Pinasthika and Ace Hardware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitra Pinasthika Mustika and Ace Hardware Indonesia, you can compare the effects of market volatilities on Mitra Pinasthika and Ace Hardware 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 Pinasthika with a short position of Ace Hardware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Ace Hardware.
Diversification Opportunities for Mitra Pinasthika and Ace Hardware
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mitra and Ace is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Ace Hardware Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ace Hardware Indonesia and Mitra Pinasthika 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 Pinasthika Mustika are associated (or correlated) with Ace Hardware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ace Hardware Indonesia has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Ace Hardware go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Ace Hardware
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 6.32 times less return on investment than Ace Hardware. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 2.13 times less risky than Ace Hardware. It trades about 0.02 of its potential returns per unit of risk. Ace Hardware Indonesia is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 40,326 in Ace Hardware Indonesia on September 2, 2024 and sell it today you would earn a total of 36,674 from holding Ace Hardware Indonesia or generate 90.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Ace Hardware Indonesia
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Ace Hardware Indonesia |
Mitra Pinasthika and Ace Hardware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Ace Hardware
The main advantage of trading using opposite Mitra Pinasthika and Ace Hardware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Ace Hardware 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 Ace Hardware will offset losses from the drop in Ace Hardware's long position.| Mitra Pinasthika vs. Saratoga Investama Sedaya | Mitra Pinasthika vs. Puradelta Lestari PT | Mitra Pinasthika vs. Cikarang Listrindo Tbk | Mitra Pinasthika vs. Erajaya Swasembada Tbk |
| Ace Hardware vs. Japfa Comfeed Indonesia | Ace Hardware vs. Charoen Pokphand Indonesia | Ace Hardware vs. Erajaya Swasembada Tbk | Ace Hardware vs. Indofood Cbp Sukses |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| CEOs Directory Screen CEOs from public companies around the world |