Correlation Between Oscar Mitra and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Oscar Mitra 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 Oscar Mitra and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oscar Mitra Sukses and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Oscar Mitra 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 Oscar Mitra with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oscar Mitra and Mitra Pinasthika.
Diversification Opportunities for Oscar Mitra and Mitra Pinasthika
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oscar and Mitra is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oscar Mitra Sukses 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 Oscar Mitra 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 Oscar Mitra Sukses 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 Oscar Mitra i.e., Oscar Mitra and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Oscar Mitra and Mitra Pinasthika
Assuming the 90 days trading horizon Oscar Mitra Sukses is expected to generate 8.44 times more return on investment than Mitra Pinasthika. However, Oscar Mitra is 8.44 times more volatile than Mitra Pinasthika Mustika. It trades about 0.05 of its potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.04 per unit of risk. If you would invest 900.00 in Oscar Mitra Sukses on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Oscar Mitra Sukses or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oscar Mitra Sukses vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Oscar Mitra Sukses |
| Mitra Pinasthika Mustika |
Oscar Mitra and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oscar Mitra and Mitra Pinasthika
The main advantage of trading using opposite Oscar Mitra and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oscar Mitra 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.| Oscar Mitra vs. Imago Mulia Persada | Oscar Mitra vs. Damai Sejahtera Abadi | Oscar Mitra vs. Nanotech Indonesia Global | Oscar Mitra vs. PT Winner Nusantara |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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