Correlation Between Mitra Pinasthika and Bank Pembangunan
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Bank Pembangunan 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 Bank Pembangunan 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 Bank Pembangunan Timur, you can compare the effects of market volatilities on Mitra Pinasthika and Bank Pembangunan 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 Bank Pembangunan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Bank Pembangunan.
Diversification Opportunities for Mitra Pinasthika and Bank Pembangunan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mitra and Bank is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Bank Pembangunan Timur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pembangunan Timur 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 Bank Pembangunan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pembangunan Timur has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Bank Pembangunan go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Bank Pembangunan
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.71 times more return on investment than Bank Pembangunan. However, Mitra Pinasthika Mustika is 1.41 times less risky than Bank Pembangunan. It trades about 0.06 of its potential returns per unit of risk. Bank Pembangunan Timur is currently generating about -0.03 per unit of risk. If you would invest 90,934 in Mitra Pinasthika Mustika on September 4, 2024 and sell it today you would earn a total of 7,566 from holding Mitra Pinasthika Mustika or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Bank Pembangunan Timur
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Bank Pembangunan Timur |
Mitra Pinasthika and Bank Pembangunan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Bank Pembangunan
The main advantage of trading using opposite Mitra Pinasthika and Bank Pembangunan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Bank Pembangunan 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 Bank Pembangunan will offset losses from the drop in Bank Pembangunan's long position.| Mitra Pinasthika vs. Jakarta Int Hotels | Mitra Pinasthika vs. Asuransi Harta Aman | Mitra Pinasthika vs. Indosterling Technomedia Tbk | Mitra Pinasthika vs. Indosat Tbk |
| Bank Pembangunan vs. Bank Jabar | Bank Pembangunan vs. Sido Muncul PT | Bank Pembangunan vs. Bank Negara Indonesia | Bank Pembangunan vs. Bank Tabungan Negara |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets |