Correlation Between Mitra Pinasthika and Puradelta Lestari
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Puradelta Lestari 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 Puradelta Lestari 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 Puradelta Lestari PT, you can compare the effects of market volatilities on Mitra Pinasthika and Puradelta Lestari 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 Puradelta Lestari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Puradelta Lestari.
Diversification Opportunities for Mitra Pinasthika and Puradelta Lestari
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and Puradelta is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Puradelta Lestari PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puradelta Lestari 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 Puradelta Lestari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puradelta Lestari has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Puradelta Lestari go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Puradelta Lestari
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 1.01 times more return on investment than Puradelta Lestari. However, Mitra Pinasthika is 1.01 times more volatile than Puradelta Lestari PT. It trades about 0.09 of its potential returns per unit of risk. Puradelta Lestari PT is currently generating about -0.06 per unit of risk. If you would invest 97,500 in Mitra Pinasthika Mustika on October 21, 2024 and sell it today you would earn a total of 1,000.00 from holding Mitra Pinasthika Mustika or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Puradelta Lestari PT
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Puradelta Lestari |
Mitra Pinasthika and Puradelta Lestari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Puradelta Lestari
The main advantage of trading using opposite Mitra Pinasthika and Puradelta Lestari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Puradelta Lestari 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 Puradelta Lestari will offset losses from the drop in Puradelta Lestari'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 |
| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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