Correlation Between Mitra Pinasthika and Petrosea Tbk
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Petrosea Tbk 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 Petrosea Tbk 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 Petrosea Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Petrosea Tbk 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 Petrosea Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Petrosea Tbk.
Diversification Opportunities for Mitra Pinasthika and Petrosea Tbk
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitra and Petrosea is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Petrosea Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrosea 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 Petrosea Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrosea Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Petrosea Tbk go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Petrosea Tbk
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 12.52 times less return on investment than Petrosea Tbk. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 3.43 times less risky than Petrosea Tbk. It trades about 0.03 of its potential returns per unit of risk. Petrosea Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 406,994 in Petrosea Tbk on August 30, 2024 and sell it today you would earn a total of 1,458,006 from holding Petrosea Tbk or generate 358.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Petrosea Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Petrosea Tbk |
Mitra Pinasthika and Petrosea Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Petrosea Tbk
The main advantage of trading using opposite Mitra Pinasthika and Petrosea Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Petrosea Tbk 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 Petrosea Tbk will offset losses from the drop in Petrosea Tbk'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 |
| Petrosea Tbk vs. Indika Energy Tbk | Petrosea Tbk vs. Harum Energy Tbk | Petrosea Tbk vs. Indo Tambangraya Megah | Petrosea Tbk vs. Gajah Tunggal 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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