Correlation Between Microsoft and Mitra Angkasa
Can any of the company-specific risk be diversified away by investing in both Microsoft and Mitra Angkasa 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 Microsoft and Mitra Angkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Mitra Angkasa Sejahtera, you can compare the effects of market volatilities on Microsoft and Mitra Angkasa 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 Microsoft with a short position of Mitra Angkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Mitra Angkasa.
Diversification Opportunities for Microsoft and Mitra Angkasa
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Mitra is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Mitra Angkasa Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Angkasa Sejahtera and Microsoft 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 Microsoft are associated (or correlated) with Mitra Angkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Angkasa Sejahtera has no effect on the direction of Microsoft i.e., Microsoft and Mitra Angkasa go up and down completely randomly.
Pair Corralation between Microsoft and Mitra Angkasa
Given the investment horizon of 90 days Microsoft is expected to generate 0.33 times more return on investment than Mitra Angkasa. However, Microsoft is 3.07 times less risky than Mitra Angkasa. It trades about 0.07 of its potential returns per unit of risk. Mitra Angkasa Sejahtera is currently generating about -0.07 per unit of risk. If you would invest 33,475 in Microsoft on September 3, 2024 and sell it today you would earn a total of 8,871 from holding Microsoft or generate 26.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.48% |
| Values | Daily Returns |
Microsoft vs. Mitra Angkasa Sejahtera
Performance |
| Timeline |
| Microsoft |
| Mitra Angkasa Sejahtera |
Microsoft and Mitra Angkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Mitra Angkasa
The main advantage of trading using opposite Microsoft and Mitra Angkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Mitra Angkasa 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 Mitra Angkasa will offset losses from the drop in Mitra Angkasa's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Mitra Angkasa vs. Autopedia Sukses Lestari | Mitra Angkasa vs. Net Visi Media | Mitra Angkasa vs. Adaro Minerals Indonesia | Mitra Angkasa vs. Caturkarda Depo Bangunan |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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