Correlation Between Mitra Pinasthika and Surya Toto
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Surya Toto 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 Toto 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 Toto Indonesia, you can compare the effects of market volatilities on Mitra Pinasthika and Surya Toto 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 Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Surya Toto.
Diversification Opportunities for Mitra Pinasthika and Surya Toto
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitra and Surya is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Surya Toto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Toto Indonesia 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 Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Toto Indonesia has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Surya Toto go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Surya Toto
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to under-perform the Surya Toto. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Pinasthika Mustika is 2.0 times less risky than Surya Toto. The stock trades about -0.25 of its potential returns per unit of risk. The Surya Toto Indonesia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 22,400 in Surya Toto Indonesia on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Surya Toto Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Surya Toto Indonesia
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Surya Toto Indonesia |
Mitra Pinasthika and Surya Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Surya Toto
The main advantage of trading using opposite Mitra Pinasthika and Surya Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Surya Toto 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 Toto will offset losses from the drop in Surya Toto's 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 |
| Surya Toto vs. Matahari Department Store | Surya Toto vs. Multi Medika Internasional | Surya Toto vs. Visi Media Asia | Surya Toto vs. Bayan Resources 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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