Correlation Between Mitra Pinasthika and Garda Tujuh
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Garda Tujuh 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 Garda Tujuh 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 Garda Tujuh Buana, you can compare the effects of market volatilities on Mitra Pinasthika and Garda Tujuh 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 Garda Tujuh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Garda Tujuh.
Diversification Opportunities for Mitra Pinasthika and Garda Tujuh
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mitra and Garda is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Garda Tujuh Buana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garda Tujuh Buana 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 Garda Tujuh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garda Tujuh Buana has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Garda Tujuh go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Garda Tujuh
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 22.0 times less return on investment than Garda Tujuh. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 4.56 times less risky than Garda Tujuh. It trades about 0.0 of its potential returns per unit of risk. Garda Tujuh Buana is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 24,400 in Garda Tujuh Buana on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Garda Tujuh Buana or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Garda Tujuh Buana
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Garda Tujuh Buana |
Mitra Pinasthika and Garda Tujuh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Garda Tujuh
The main advantage of trading using opposite Mitra Pinasthika and Garda Tujuh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Garda Tujuh 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 Garda Tujuh will offset losses from the drop in Garda Tujuh's long position.| Mitra Pinasthika vs. Pembangunan Graha Lestari | Mitra Pinasthika vs. Pembangunan Jaya Ancol | Mitra Pinasthika vs. Hotel Sahid Jaya | Mitra Pinasthika vs. Mitrabara Adiperdana PT |
| Garda Tujuh vs. Resource Alam Indonesia | Garda Tujuh vs. Perdana Karya Perkasa | Garda Tujuh vs. Exploitasi Energi Indonesia | Garda Tujuh vs. Bayan Resources Tbk |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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