Correlation Between Mitra Pinasthika and Ictsi Jasa
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Ictsi Jasa 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 Ictsi Jasa 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 Ictsi Jasa Prima, you can compare the effects of market volatilities on Mitra Pinasthika and Ictsi Jasa 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 Ictsi Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Ictsi Jasa.
Diversification Opportunities for Mitra Pinasthika and Ictsi Jasa
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Ictsi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Ictsi Jasa Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ictsi Jasa Prima 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 Ictsi Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ictsi Jasa Prima has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Ictsi Jasa go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Ictsi Jasa
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to under-perform the Ictsi Jasa. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Pinasthika Mustika is 5.17 times less risky than Ictsi Jasa. The stock trades about 0.0 of its potential returns per unit of risk. The Ictsi Jasa Prima is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,200 in Ictsi Jasa Prima on November 28, 2024 and sell it today you would earn a total of 99,300 from holding Ictsi Jasa Prima or generate 1909.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Ictsi Jasa Prima
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Ictsi Jasa Prima |
Mitra Pinasthika and Ictsi Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Ictsi Jasa
The main advantage of trading using opposite Mitra Pinasthika and Ictsi Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Ictsi Jasa 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 Ictsi Jasa will offset losses from the drop in Ictsi Jasa'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 |
| Ictsi Jasa vs. Kabelindo Murni Tbk | Ictsi Jasa vs. Jembo Cable | Ictsi Jasa vs. Kedaung Indah Can | Ictsi Jasa vs. Kedawung Setia Industrial |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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