Correlation Between Mitra Pinasthika and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Astra Graphia 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 Astra Graphia 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 Astra Graphia Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Astra Graphia 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 Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Astra Graphia.
Diversification Opportunities for Mitra Pinasthika and Astra Graphia
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitra and Astra is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk 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 Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Astra Graphia go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Astra Graphia
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 1.0 times more return on investment than Astra Graphia. However, Mitra Pinasthika is 1.0 times more volatile than Astra Graphia Tbk. It trades about 0.02 of its potential returns per unit of risk. Astra Graphia Tbk is currently generating about 0.01 per unit of risk. If you would invest 89,607 in Mitra Pinasthika Mustika on September 3, 2024 and sell it today you would earn a total of 9,393 from holding Mitra Pinasthika Mustika or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Astra Graphia Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Astra Graphia Tbk |
Mitra Pinasthika and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Astra Graphia
The main advantage of trading using opposite Mitra Pinasthika and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Astra Graphia 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 Astra Graphia will offset losses from the drop in Astra Graphia'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 |
| Astra Graphia vs. Intanwijaya Internasional Tbk | Astra Graphia vs. Champion Pacific Indonesia | Astra Graphia vs. Mitra Pinasthika Mustika | Astra Graphia 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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