Correlation Between Mitra Pinasthika and Trimitra Propertindo
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Trimitra Propertindo 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 Trimitra Propertindo 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 Trimitra Propertindo Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Trimitra Propertindo 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 Trimitra Propertindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Trimitra Propertindo.
Diversification Opportunities for Mitra Pinasthika and Trimitra Propertindo
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Trimitra is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Trimitra Propertindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimitra Propertindo 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 Trimitra Propertindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimitra Propertindo Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Trimitra Propertindo go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Trimitra Propertindo
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.31 times more return on investment than Trimitra Propertindo. However, Mitra Pinasthika Mustika is 3.21 times less risky than Trimitra Propertindo. It trades about 0.02 of its potential returns per unit of risk. Trimitra Propertindo Tbk is currently generating about -0.04 per unit of risk. If you would invest 90,389 in Mitra Pinasthika Mustika on September 2, 2024 and sell it today you would earn a total of 8,611 from holding Mitra Pinasthika Mustika or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Trimitra Propertindo Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Trimitra Propertindo Tbk |
Mitra Pinasthika and Trimitra Propertindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Trimitra Propertindo
The main advantage of trading using opposite Mitra Pinasthika and Trimitra Propertindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Trimitra Propertindo 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 Trimitra Propertindo will offset losses from the drop in Trimitra Propertindo'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 |
| Trimitra Propertindo vs. Lippo Cikarang Tbk | Trimitra Propertindo vs. Lippo Karawaci Tbk | Trimitra Propertindo vs. Mitra Pinasthika Mustika | Trimitra Propertindo 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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