Correlation Between Mitra Pinasthika and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Kokoh Inti 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 Kokoh Inti 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 Kokoh Inti Arebama, you can compare the effects of market volatilities on Mitra Pinasthika and Kokoh Inti 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 Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Kokoh Inti.
Diversification Opportunities for Mitra Pinasthika and Kokoh Inti
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Kokoh is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Kokoh Inti Arebama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kokoh Inti Arebama 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 Kokoh Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kokoh Inti Arebama has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Kokoh Inti go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Kokoh Inti
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.23 times more return on investment than Kokoh Inti. However, Mitra Pinasthika Mustika is 4.44 times less risky than Kokoh Inti. It trades about -0.17 of its potential returns per unit of risk. Kokoh Inti Arebama is currently generating about -0.14 per unit of risk. If you would invest 100,500 in Mitra Pinasthika Mustika on September 3, 2024 and sell it today you would lose (1,500) from holding Mitra Pinasthika Mustika or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Kokoh Inti Arebama
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Kokoh Inti Arebama |
Mitra Pinasthika and Kokoh Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Kokoh Inti
The main advantage of trading using opposite Mitra Pinasthika and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Kokoh Inti 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 Kokoh Inti will offset losses from the drop in Kokoh Inti'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 |
| Kokoh Inti vs. Intanwijaya Internasional Tbk | Kokoh Inti vs. Champion Pacific Indonesia | Kokoh Inti vs. Mitra Pinasthika Mustika | Kokoh Inti 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |