Correlation Between Mitra Pinasthika and Asuransi Multi
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Asuransi Multi 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 Asuransi Multi 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 Asuransi Multi Artha, you can compare the effects of market volatilities on Mitra Pinasthika and Asuransi Multi 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 Asuransi Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Asuransi Multi.
Diversification Opportunities for Mitra Pinasthika and Asuransi Multi
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mitra and Asuransi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Asuransi Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Multi Artha 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 Asuransi Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Multi Artha has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Asuransi Multi go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Asuransi Multi
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 2.08 times less return on investment than Asuransi Multi. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 2.33 times less risky than Asuransi Multi. It trades about 0.06 of its potential returns per unit of risk. Asuransi Multi Artha is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 28,629 in Asuransi Multi Artha on September 3, 2024 and sell it today you would earn a total of 4,771 from holding Asuransi Multi Artha or generate 16.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Asuransi Multi Artha
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Asuransi Multi Artha |
Mitra Pinasthika and Asuransi Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Asuransi Multi
The main advantage of trading using opposite Mitra Pinasthika and Asuransi Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Asuransi Multi 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 Asuransi Multi will offset losses from the drop in Asuransi Multi'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 |
| Asuransi Multi vs. Asuransi Bina Dana | Asuransi Multi vs. Asuransi Dayin Mitra | Asuransi Multi vs. Clipan Finance Indonesia | Asuransi Multi vs. Asuransi Harta Aman |
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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