Correlation Between Nanotech Indonesia and Mitra Angkasa
Can any of the company-specific risk be diversified away by investing in both Nanotech Indonesia 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 Nanotech Indonesia and Mitra Angkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanotech Indonesia Global and Mitra Angkasa Sejahtera, you can compare the effects of market volatilities on Nanotech Indonesia 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 Nanotech Indonesia with a short position of Mitra Angkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanotech Indonesia and Mitra Angkasa.
Diversification Opportunities for Nanotech Indonesia and Mitra Angkasa
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nanotech and Mitra is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nanotech Indonesia Global 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 Nanotech Indonesia 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 Nanotech Indonesia Global 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 Nanotech Indonesia i.e., Nanotech Indonesia and Mitra Angkasa go up and down completely randomly.
Pair Corralation between Nanotech Indonesia and Mitra Angkasa
Assuming the 90 days trading horizon Nanotech Indonesia Global is expected to generate 0.99 times more return on investment than Mitra Angkasa. However, Nanotech Indonesia Global is 1.01 times less risky than Mitra Angkasa. It trades about 0.1 of its potential returns per unit of risk. Mitra Angkasa Sejahtera is currently generating about 0.03 per unit of risk. If you would invest 1,400 in Nanotech Indonesia Global on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Nanotech Indonesia Global or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanotech Indonesia Global vs. Mitra Angkasa Sejahtera
Performance |
| Timeline |
| Nanotech Indonesia Global |
| Mitra Angkasa Sejahtera |
Nanotech Indonesia and Mitra Angkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanotech Indonesia and Mitra Angkasa
The main advantage of trading using opposite Nanotech Indonesia and Mitra Angkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanotech Indonesia 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.| Nanotech Indonesia vs. Sumber Tani Agung | Nanotech Indonesia vs. Wahana Inti MakmurTbk | Nanotech Indonesia vs. Integra Indocabinet Tbk | Nanotech Indonesia vs. Multistrada Arah Sarana |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |