Correlation Between Mitra Pinasthika and Supra Boga
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Supra Boga 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 Supra Boga 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 Supra Boga Lestari, you can compare the effects of market volatilities on Mitra Pinasthika and Supra Boga 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 Supra Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Supra Boga.
Diversification Opportunities for Mitra Pinasthika and Supra Boga
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Supra is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Supra Boga Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supra Boga Lestari 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 Supra Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supra Boga Lestari has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Supra Boga go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Supra Boga
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.28 times more return on investment than Supra Boga. However, Mitra Pinasthika Mustika is 3.61 times less risky than Supra Boga. It trades about -0.25 of its potential returns per unit of risk. Supra Boga Lestari is currently generating about -0.14 per unit of risk. If you would invest 101,500 in Mitra Pinasthika Mustika on September 1, 2024 and sell it today you would lose (2,500) from holding Mitra Pinasthika Mustika or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Supra Boga Lestari
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Supra Boga Lestari |
Mitra Pinasthika and Supra Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Supra Boga
The main advantage of trading using opposite Mitra Pinasthika and Supra Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Supra Boga 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 Supra Boga will offset losses from the drop in Supra Boga'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 |
| Supra Boga vs. Bank BRISyariah Tbk | Supra Boga vs. Mitra Pinasthika Mustika | Supra Boga vs. Jakarta Int Hotels | Supra Boga 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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