Correlation Between Mitra Pinasthika and Tempo Inti
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Tempo Inti 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 Tempo Inti 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 Tempo Inti Media, you can compare the effects of market volatilities on Mitra Pinasthika and Tempo Inti 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 Tempo Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Tempo Inti.
Diversification Opportunities for Mitra Pinasthika and Tempo Inti
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Tempo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Tempo Inti Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Inti 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 Tempo Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Inti Media has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Tempo Inti go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Tempo Inti
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.1 times more return on investment than Tempo Inti. However, Mitra Pinasthika Mustika is 10.41 times less risky than Tempo Inti. It trades about -0.22 of its potential returns per unit of risk. Tempo Inti Media is currently generating about -0.22 per unit of risk. If you would invest 100,500 in Mitra Pinasthika Mustika on September 4, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Tempo Inti Media
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Tempo Inti Media |
Mitra Pinasthika and Tempo Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Tempo Inti
The main advantage of trading using opposite Mitra Pinasthika and Tempo Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Tempo Inti 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 Tempo Inti will offset losses from the drop in Tempo Inti's 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 |
| Tempo Inti vs. Indosat Tbk | Tempo Inti vs. Energi Mega Persada | Tempo Inti vs. Mitra Pinasthika Mustika | Tempo Inti 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |