Correlation Between Mitra Pinasthika and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and PT Sunter 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 PT Sunter 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 PT Sunter Lakeside, you can compare the effects of market volatilities on Mitra Pinasthika and PT Sunter 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 PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and PT Sunter.
Diversification Opportunities for Mitra Pinasthika and PT Sunter
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mitra and SNLK is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside 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 PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and PT Sunter go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and PT Sunter
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.15 times more return on investment than PT Sunter. However, Mitra Pinasthika Mustika is 6.66 times less risky than PT Sunter. It trades about -0.22 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about -0.04 per unit of risk. If you would invest 100,500 in Mitra Pinasthika Mustika on September 5, 2024 and sell it today you would lose (2,000) from holding Mitra Pinasthika Mustika or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. PT Sunter Lakeside
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| PT Sunter Lakeside |
Mitra Pinasthika and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and PT Sunter
The main advantage of trading using opposite Mitra Pinasthika and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, PT Sunter 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 PT Sunter will offset losses from the drop in PT Sunter's long position.| Mitra Pinasthika vs. Asuransi Harta Aman | Mitra Pinasthika vs. Indosterling Technomedia Tbk | Mitra Pinasthika vs. Indosat Tbk | Mitra Pinasthika vs. Bank Negara Indonesia |
| PT Sunter vs. Campina Ice Cream | PT Sunter vs. Mitra Pinasthika Mustika | PT Sunter vs. Jakarta Int Hotels | PT Sunter vs. Indosat 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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