Correlation Between Mitra Pinasthika and Fortune Mate
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Fortune Mate 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 Fortune Mate 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 Fortune Mate Indonesia, you can compare the effects of market volatilities on Mitra Pinasthika and Fortune Mate 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 Fortune Mate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Fortune Mate.
Diversification Opportunities for Mitra Pinasthika and Fortune Mate
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitra and Fortune is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Fortune Mate Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortune Mate Indonesia 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 Fortune Mate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortune Mate Indonesia has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Fortune Mate go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Fortune Mate
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to under-perform the Fortune Mate. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Pinasthika Mustika is 21.74 times less risky than Fortune Mate. The stock trades about -0.25 of its potential returns per unit of risk. The Fortune Mate Indonesia is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 22,800 in Fortune Mate Indonesia on September 2, 2024 and sell it today you would earn a total of 31,700 from holding Fortune Mate Indonesia or generate 139.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Fortune Mate Indonesia
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Fortune Mate Indonesia |
Mitra Pinasthika and Fortune Mate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Fortune Mate
The main advantage of trading using opposite Mitra Pinasthika and Fortune Mate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Fortune Mate 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 Fortune Mate will offset losses from the drop in Fortune Mate'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 |
| Fortune Mate vs. Lippo Cikarang Tbk | Fortune Mate vs. Bekasi Asri Pemula | Fortune Mate vs. Mitra Pinasthika Mustika | Fortune Mate 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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