Correlation Between Mitra Pinasthika and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Jaya Sukses 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 Jaya Sukses 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 Jaya Sukses Makmur, you can compare the effects of market volatilities on Mitra Pinasthika and Jaya Sukses 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 Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Jaya Sukses.
Diversification Opportunities for Mitra Pinasthika and Jaya Sukses
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitra and Jaya is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur 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 Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Jaya Sukses go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Jaya Sukses
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to under-perform the Jaya Sukses. In addition to that, Mitra Pinasthika is 2.83 times more volatile than Jaya Sukses Makmur. It trades about -0.17 of its total potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.32 per unit of volatility. If you would invest 99,000 in Jaya Sukses Makmur on September 3, 2024 and sell it today you would earn a total of 1,000.00 from holding Jaya Sukses Makmur or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Jaya Sukses Makmur |
Mitra Pinasthika and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Jaya Sukses
The main advantage of trading using opposite Mitra Pinasthika and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Jaya Sukses 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 Jaya Sukses will offset losses from the drop in Jaya Sukses' 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 |
| Jaya Sukses vs. Intanwijaya Internasional Tbk | Jaya Sukses vs. Champion Pacific Indonesia | Jaya Sukses vs. Mitra Pinasthika Mustika | Jaya Sukses vs. Jakarta Int Hotels |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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