Correlation Between Mitra Pinasthika and Surya Citra
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Surya Citra 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 Surya Citra 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 Surya Citra Media, you can compare the effects of market volatilities on Mitra Pinasthika and Surya Citra 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 Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Surya Citra.
Diversification Opportunities for Mitra Pinasthika and Surya Citra
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitra and Surya is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Surya Citra Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Citra Media 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 Surya Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Citra Media has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Surya Citra go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Surya Citra
Assuming the 90 days trading horizon Mitra Pinasthika is expected to generate 7.65 times less return on investment than Surya Citra. But when comparing it to its historical volatility, Mitra Pinasthika Mustika is 4.38 times less risky than Surya Citra. It trades about 0.07 of its potential returns per unit of risk. Surya Citra Media is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11,967 in Surya Citra Media on September 12, 2024 and sell it today you would earn a total of 5,933 from holding Surya Citra Media or generate 49.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Surya Citra Media
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Surya Citra Media |
Mitra Pinasthika and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Surya Citra
The main advantage of trading using opposite Mitra Pinasthika and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Surya Citra 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 Surya Citra will offset losses from the drop in Surya Citra'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 |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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