Correlation Between Mitra Pinasthika and PT Mulia
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and PT Mulia 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 PT Mulia 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 PT Mulia Industrindo, you can compare the effects of market volatilities on Mitra Pinasthika and PT Mulia 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 PT Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and PT Mulia.
Diversification Opportunities for Mitra Pinasthika and PT Mulia
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mitra and MLIA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and PT Mulia Industrindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mulia Industrindo 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 PT Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mulia Industrindo has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and PT Mulia go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and PT Mulia
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.77 times more return on investment than PT Mulia. However, Mitra Pinasthika Mustika is 1.3 times less risky than PT Mulia. It trades about 0.03 of its potential returns per unit of risk. PT Mulia Industrindo is currently generating about -0.06 per unit of risk. If you would invest 90,934 in Mitra Pinasthika Mustika on September 4, 2024 and sell it today you would earn a total of 7,566 from holding Mitra Pinasthika Mustika or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. PT Mulia Industrindo
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| PT Mulia Industrindo |
Mitra Pinasthika and PT Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and PT Mulia
The main advantage of trading using opposite Mitra Pinasthika and PT Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, PT Mulia 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 PT Mulia will offset losses from the drop in PT Mulia'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 |
| PT Mulia vs. Intanwijaya Internasional Tbk | PT Mulia vs. Champion Pacific Indonesia | PT Mulia vs. Mitra Pinasthika Mustika | PT Mulia 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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