Correlation Between Mitra Pinasthika and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Mitra Keluarga 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 Mitra Keluarga 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 Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Mitra Pinasthika and Mitra Keluarga 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 Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Mitra Keluarga.
Diversification Opportunities for Mitra Pinasthika and Mitra Keluarga
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and Mitra is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat 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 Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Mitra Keluarga
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.27 times more return on investment than Mitra Keluarga. However, Mitra Pinasthika Mustika is 3.76 times less risky than Mitra Keluarga. It trades about -0.22 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.17 per unit of risk. If you would invest 100,500 in Mitra Pinasthika Mustika on September 4, 2024 and sell it today you would lose (2,000) from holding Mitra Pinasthika Mustika or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Mitra Keluarga Karyasehat |
Mitra Pinasthika and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Mitra Keluarga
The main advantage of trading using opposite Mitra Pinasthika and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga'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 |
| Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Mitra Pinasthika Mustika | Mitra Keluarga 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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