Correlation Between Mitra Pinasthika and Mayora Indah
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Mayora Indah 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 Mayora Indah 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 Mayora Indah Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Mayora Indah 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 Mayora Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Mayora Indah.
Diversification Opportunities for Mitra Pinasthika and Mayora Indah
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mitra and Mayora is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Mayora Indah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayora Indah 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 Mayora Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayora Indah Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Mayora Indah go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Mayora Indah
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 1.45 times less return on investment than Mayora Indah. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 1.44 times less risky than Mayora Indah. It trades about 0.02 of its potential returns per unit of risk. Mayora Indah Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 242,033 in Mayora Indah Tbk on September 2, 2024 and sell it today you would earn a total of 27,967 from holding Mayora Indah Tbk or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Mayora Indah Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Mayora Indah Tbk |
Mitra Pinasthika and Mayora Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Mayora Indah
The main advantage of trading using opposite Mitra Pinasthika and Mayora Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Mayora Indah 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 Mayora Indah will offset losses from the drop in Mayora Indah'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 |
| Mayora Indah vs. Bank BRISyariah Tbk | Mayora Indah vs. Mitra Pinasthika Mustika | Mayora Indah vs. Jakarta Int Hotels | Mayora Indah vs. Indosterling Technomedia Tbk |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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