Correlation Between Mitra Pinasthika and Intiland Development
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Intiland Development 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 Intiland Development 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 Intiland Development Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Intiland Development 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 Intiland Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Intiland Development.
Diversification Opportunities for Mitra Pinasthika and Intiland Development
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and Intiland is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Intiland Development Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intiland Development 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 Intiland Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intiland Development Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Intiland Development go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Intiland Development
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.47 times more return on investment than Intiland Development. However, Mitra Pinasthika Mustika is 2.14 times less risky than Intiland Development. It trades about 0.02 of its potential returns per unit of risk. Intiland Development Tbk is currently generating about 0.0 per unit of risk. If you would invest 91,955 in Mitra Pinasthika Mustika on August 31, 2024 and sell it today you would earn a total of 7,545 from holding Mitra Pinasthika Mustika or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Intiland Development Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Intiland Development Tbk |
Mitra Pinasthika and Intiland Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Intiland Development
The main advantage of trading using opposite Mitra Pinasthika and Intiland Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Intiland Development 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 Intiland Development will offset losses from the drop in Intiland Development'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 |
| Intiland Development vs. Lippo Cikarang Tbk | Intiland Development vs. Lippo Karawaci Tbk | Intiland Development vs. Mitra Pinasthika Mustika | Intiland Development 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 Stocks Directory module to find actively traded stocks across global markets.
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