Correlation Between Mitra Pinasthika and Sentra Food
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Sentra Food 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 Sentra Food 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 Sentra Food Indonesia, you can compare the effects of market volatilities on Mitra Pinasthika and Sentra Food 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 Sentra Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Sentra Food.
Diversification Opportunities for Mitra Pinasthika and Sentra Food
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitra and Sentra is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Sentra Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentra Food 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 Sentra Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentra Food Indonesia has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Sentra Food go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Sentra Food
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.43 times more return on investment than Sentra Food. However, Mitra Pinasthika Mustika is 2.31 times less risky than Sentra Food. It trades about 0.05 of its potential returns per unit of risk. Sentra Food Indonesia is currently generating about -0.03 per unit of risk. If you would invest 94,500 in Mitra Pinasthika Mustika on September 3, 2024 and sell it today you would earn a total of 4,500 from holding Mitra Pinasthika Mustika or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Sentra Food Indonesia
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Sentra Food Indonesia |
Mitra Pinasthika and Sentra Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Sentra Food
The main advantage of trading using opposite Mitra Pinasthika and Sentra Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Sentra Food 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 Sentra Food will offset losses from the drop in Sentra Food'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 |
| Sentra Food vs. Garudafood Putra Putri | Sentra Food vs. PT Wahana Interfood | Sentra Food vs. Mitra Pinasthika Mustika | Sentra Food 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |