Correlation Between Samindo Resources and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and Mitra Pinasthika 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 Samindo Resources and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samindo Resources Tbk and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Samindo Resources and Mitra Pinasthika 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 Samindo Resources with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and Mitra Pinasthika.
Diversification Opportunities for Samindo Resources and Mitra Pinasthika
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samindo and Mitra is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and Mitra Pinasthika Mustika in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Pinasthika Mustika and Samindo Resources 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 Samindo Resources Tbk are associated (or correlated) with Mitra Pinasthika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Pinasthika Mustika has no effect on the direction of Samindo Resources i.e., Samindo Resources and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Samindo Resources and Mitra Pinasthika
Assuming the 90 days trading horizon Samindo Resources is expected to generate 1.37 times less return on investment than Mitra Pinasthika. In addition to that, Samindo Resources is 1.3 times more volatile than Mitra Pinasthika Mustika. It trades about 0.01 of its total potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.03 per unit of volatility. If you would invest 88,433 in Mitra Pinasthika Mustika on August 30, 2024 and sell it today you would earn a total of 11,067 from holding Mitra Pinasthika Mustika or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samindo Resources Tbk vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Samindo Resources Tbk |
| Mitra Pinasthika Mustika |
Samindo Resources and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and Mitra Pinasthika
The main advantage of trading using opposite Samindo Resources and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, Mitra Pinasthika 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 Pinasthika will offset losses from the drop in Mitra Pinasthika's long position.| Samindo Resources vs. Resource Alam Indonesia | Samindo Resources vs. Petrosea Tbk | Samindo Resources vs. Kmi Wire And | Samindo Resources vs. Mitrabara Adiperdana PT |
| Mitra Pinasthika vs. Saratoga Investama Sedaya | Mitra Pinasthika vs. Puradelta Lestari PT | Mitra Pinasthika vs. Cikarang Listrindo Tbk | Mitra Pinasthika vs. Erajaya Swasembada 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |