Correlation Between Mitra Pinasthika and Rig Tenders
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Rig Tenders 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 Rig Tenders 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 Rig Tenders Tbk, you can compare the effects of market volatilities on Mitra Pinasthika and Rig Tenders 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 Rig Tenders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Rig Tenders.
Diversification Opportunities for Mitra Pinasthika and Rig Tenders
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mitra and Rig is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Rig Tenders Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rig Tenders 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 Rig Tenders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rig Tenders Tbk has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Rig Tenders go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Rig Tenders
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 1.82 times less return on investment than Rig Tenders. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 2.39 times less risky than Rig Tenders. It trades about 0.03 of its potential returns per unit of risk. Rig Tenders Tbk is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 59,500 in Rig Tenders Tbk on September 4, 2024 and sell it today you would earn a total of 6,000 from holding Rig Tenders Tbk or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Rig Tenders Tbk
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Rig Tenders Tbk |
Mitra Pinasthika and Rig Tenders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Rig Tenders
The main advantage of trading using opposite Mitra Pinasthika and Rig Tenders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Rig Tenders 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 Rig Tenders will offset losses from the drop in Rig Tenders' long position.| Mitra Pinasthika vs. Jakarta Int Hotels | Mitra Pinasthika vs. Asuransi Harta Aman | Mitra Pinasthika vs. Indosterling Technomedia Tbk | Mitra Pinasthika vs. Indosat Tbk |
| Rig Tenders vs. Samudera Indonesia Tbk | Rig Tenders vs. Steady Safe TBK | Rig Tenders vs. Rukun Raharja Tbk | Rig Tenders vs. PT Temas 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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