Correlation Between Mitra Pinasthika and Charnic Capital
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Charnic Capital 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 Charnic Capital 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 Charnic Capital Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Charnic Capital 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 Charnic Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Charnic Capital.
Diversification Opportunities for Mitra Pinasthika and Charnic Capital
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitra and Charnic is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Charnic Capital Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charnic Capital 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 Charnic Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charnic Capital Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Charnic Capital go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Charnic Capital
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 152.5 times less return on investment than Charnic Capital. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 10.33 times less risky than Charnic Capital. It trades about 0.0 of its potential returns per unit of risk. Charnic Capital Tbk is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 62,000 in Charnic Capital Tbk on September 12, 2024 and sell it today you would earn a total of 500.00 from holding Charnic Capital Tbk or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Charnic Capital Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Charnic Capital Tbk |
Mitra Pinasthika and Charnic Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Charnic Capital
The main advantage of trading using opposite Mitra Pinasthika and Charnic Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Charnic Capital 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 Charnic Capital will offset losses from the drop in Charnic Capital'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 |
| Charnic Capital vs. Ciputra Development Tbk | Charnic Capital vs. Bumi Serpong Damai | Charnic Capital vs. Alam Sutera Realty | Charnic Capital vs. Lippo Karawaci 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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