Correlation Between Mitra Pinasthika and Media Nusantara
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Media Nusantara 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 Media Nusantara 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 Media Nusantara Citra, you can compare the effects of market volatilities on Mitra Pinasthika and Media Nusantara 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 Media Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Media Nusantara.
Diversification Opportunities for Mitra Pinasthika and Media Nusantara
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Media is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Media Nusantara Citra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Nusantara Citra 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 Media Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Nusantara Citra has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Media Nusantara go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Media Nusantara
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 10.5 times less return on investment than Media Nusantara. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 3.15 times less risky than Media Nusantara. It trades about 0.0 of its potential returns per unit of risk. Media Nusantara Citra is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 30,600 in Media Nusantara Citra on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Media Nusantara Citra or generate 0.0% 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. Media Nusantara Citra
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Media Nusantara Citra |
Mitra Pinasthika and Media Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Media Nusantara
The main advantage of trading using opposite Mitra Pinasthika and Media Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Media Nusantara 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 Media Nusantara will offset losses from the drop in Media Nusantara's long position.| Mitra Pinasthika vs. Pembangunan Graha Lestari | Mitra Pinasthika vs. Pembangunan Jaya Ancol | Mitra Pinasthika vs. Hotel Sahid Jaya | Mitra Pinasthika vs. Mitrabara Adiperdana PT |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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