Correlation Between Mitra Pinasthika and Arita Prima
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Arita Prima 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 Arita Prima 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 Arita Prima Indonesia, you can compare the effects of market volatilities on Mitra Pinasthika and Arita Prima 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 Arita Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Arita Prima.
Diversification Opportunities for Mitra Pinasthika and Arita Prima
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mitra and Arita is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Arita Prima Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arita Prima 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 Arita Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arita Prima Indonesia has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Arita Prima go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Arita Prima
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to under-perform the Arita Prima. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Pinasthika Mustika is 2.58 times less risky than Arita Prima. The stock trades about -0.13 of its potential returns per unit of risk. The Arita Prima Indonesia is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 17,700 in Arita Prima Indonesia on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Arita Prima Indonesia or generate 0.56% 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. Arita Prima Indonesia
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Arita Prima Indonesia |
Mitra Pinasthika and Arita Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Arita Prima
The main advantage of trading using opposite Mitra Pinasthika and Arita Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Arita Prima 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 Arita Prima will offset losses from the drop in Arita Prima'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 |
| Arita Prima vs. Intanwijaya Internasional Tbk | Arita Prima vs. Champion Pacific Indonesia | Arita Prima vs. Mitra Pinasthika Mustika | Arita Prima vs. Jakarta Int Hotels |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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