Correlation Between Mitra Pinasthika and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Humpuss Intermoda 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 Humpuss Intermoda 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 Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Mitra Pinasthika and Humpuss Intermoda 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 Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Humpuss Intermoda.
Diversification Opportunities for Mitra Pinasthika and Humpuss Intermoda
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitra and Humpuss is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda 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 Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Humpuss Intermoda
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 2.44 times less return on investment than Humpuss Intermoda. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 3.9 times less risky than Humpuss Intermoda. It trades about 0.02 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 53,000 in Humpuss Intermoda Transportasi on September 3, 2024 and sell it today you would lose (10,400) from holding Humpuss Intermoda Transportasi or give up 19.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Humpuss Intermoda |
Mitra Pinasthika and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Humpuss Intermoda
The main advantage of trading using opposite Mitra Pinasthika and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda'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 |
| Humpuss Intermoda vs. Weha Transportasi Indonesia | Humpuss Intermoda vs. Mitra Pinasthika Mustika | Humpuss Intermoda vs. Jakarta Int Hotels | Humpuss Intermoda vs. Asuransi Harta Aman |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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