Correlation Between Mitra Pinasthika and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Grand Kartech 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 Grand Kartech 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 Grand Kartech Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Grand Kartech 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 Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Grand Kartech.
Diversification Opportunities for Mitra Pinasthika and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitra and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk 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 Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Grand Kartech go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Grand Kartech
If you would invest 90,488 in Mitra Pinasthika Mustika on September 4, 2024 and sell it today you would earn a total of 8,012 from holding Mitra Pinasthika Mustika or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Grand Kartech Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Grand Kartech Tbk |
Mitra Pinasthika and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Grand Kartech
The main advantage of trading using opposite Mitra Pinasthika and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Grand Kartech 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 Grand Kartech will offset losses from the drop in Grand Kartech's long position.| Mitra Pinasthika vs. Jakarta Int Hotels | Mitra Pinasthika vs. Asuransi Harta Aman | Mitra Pinasthika vs. Indosterling Technomedia Tbk | Mitra Pinasthika vs. Indosat Tbk |
| Grand Kartech vs. Intanwijaya Internasional Tbk | Grand Kartech vs. Champion Pacific Indonesia | Grand Kartech vs. Mitra Pinasthika Mustika | Grand Kartech 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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