Correlation Between Mitra Pinasthika and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Maming Enam 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 Maming Enam 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 Maming Enam Sembilan, you can compare the effects of market volatilities on Mitra Pinasthika and Maming Enam 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 Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Maming Enam.
Diversification Opportunities for Mitra Pinasthika and Maming Enam
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mitra and Maming is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan 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 Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Maming Enam go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Maming Enam
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.14 times more return on investment than Maming Enam. However, Mitra Pinasthika Mustika is 7.33 times less risky than Maming Enam. It trades about -0.25 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about -0.38 per unit of risk. If you would invest 101,500 in Mitra Pinasthika Mustika on September 2, 2024 and sell it today you would lose (2,500) from holding Mitra Pinasthika Mustika or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Maming Enam Sembilan
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Maming Enam Sembilan |
Mitra Pinasthika and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Maming Enam
The main advantage of trading using opposite Mitra Pinasthika and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam'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 |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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