Correlation Between Mitra Pinasthika and FKS Food
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and FKS Food 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 FKS Food 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 FKS Food Sejahtera, you can compare the effects of market volatilities on Mitra Pinasthika and FKS Food 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 FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and FKS Food.
Diversification Opportunities for Mitra Pinasthika and FKS Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and FKS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and FKS Food Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FKS Food Sejahtera 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 FKS Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FKS Food Sejahtera has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and FKS Food go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and FKS Food
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.43 times more return on investment than FKS Food. However, Mitra Pinasthika Mustika is 2.32 times less risky than FKS Food. It trades about 0.0 of its potential returns per unit of risk. FKS Food Sejahtera is currently generating about -0.02 per unit of risk. If you would invest 97,041 in Mitra Pinasthika Mustika on November 28, 2024 and sell it today you would lose (2,541) from holding Mitra Pinasthika Mustika or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. FKS Food Sejahtera
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| FKS Food Sejahtera |
Mitra Pinasthika and FKS Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and FKS Food
The main advantage of trading using opposite Mitra Pinasthika and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, FKS Food 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 FKS Food will offset losses from the drop in FKS Food'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 |
| FKS Food vs. Alam Sutera Realty | FKS Food vs. Sentul City Tbk | FKS Food vs. Gajah Tunggal Tbk | FKS Food vs. Akr Corporindo 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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