Correlation Between Mitra Pinasthika and Adi Sarana
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Adi Sarana 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 Adi Sarana 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 Adi Sarana Armada, you can compare the effects of market volatilities on Mitra Pinasthika and Adi Sarana 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 Adi Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Adi Sarana.
Diversification Opportunities for Mitra Pinasthika and Adi Sarana
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mitra and Adi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Adi Sarana Armada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adi Sarana Armada 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 Adi Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adi Sarana Armada has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Adi Sarana go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Adi Sarana
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.38 times more return on investment than Adi Sarana. However, Mitra Pinasthika Mustika is 2.61 times less risky than Adi Sarana. It trades about 0.04 of its potential returns per unit of risk. Adi Sarana Armada is currently generating about -0.01 per unit of risk. If you would invest 90,488 in Mitra Pinasthika Mustika on September 14, 2024 and sell it today you would earn a total of 9,012 from holding Mitra Pinasthika Mustika or generate 9.96% 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. Adi Sarana Armada
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Adi Sarana Armada |
Mitra Pinasthika and Adi Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Adi Sarana
The main advantage of trading using opposite Mitra Pinasthika and Adi Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Adi Sarana 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 Adi Sarana will offset losses from the drop in Adi Sarana'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 |
| Adi Sarana vs. PT Indonesia Kendaraan | Adi Sarana vs. Surya Toto Indonesia | Adi Sarana vs. Mitra Pinasthika Mustika | Adi Sarana vs. Integra Indocabinet 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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