Correlation Between Mitra Pinasthika and Bekasi Asri
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Bekasi Asri 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 Bekasi Asri 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 Bekasi Asri Pemula, you can compare the effects of market volatilities on Mitra Pinasthika and Bekasi Asri 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 Bekasi Asri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Bekasi Asri.
Diversification Opportunities for Mitra Pinasthika and Bekasi Asri
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitra and Bekasi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Bekasi Asri Pemula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Asri Pemula 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 Bekasi Asri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Asri Pemula has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Bekasi Asri go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Bekasi Asri
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.15 times more return on investment than Bekasi Asri. However, Mitra Pinasthika Mustika is 6.57 times less risky than Bekasi Asri. It trades about -0.25 of its potential returns per unit of risk. Bekasi Asri Pemula is currently generating about -0.04 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Bekasi Asri Pemula
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Bekasi Asri Pemula |
Mitra Pinasthika and Bekasi Asri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Bekasi Asri
The main advantage of trading using opposite Mitra Pinasthika and Bekasi Asri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Bekasi Asri 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 Bekasi Asri will offset losses from the drop in Bekasi Asri'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 |
| Bekasi Asri vs. Lippo Cikarang Tbk | Bekasi Asri vs. Lippo Karawaci Tbk | Bekasi Asri vs. Mitra Pinasthika Mustika | Bekasi Asri 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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