Correlation Between Pembangunan Graha and Mitra Adiperkasa
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Mitra Adiperkasa 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 Pembangunan Graha and Mitra Adiperkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembangunan Graha Lestari and Mitra Adiperkasa Tbk, you can compare the effects of market volatilities on Pembangunan Graha and Mitra Adiperkasa 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 Pembangunan Graha with a short position of Mitra Adiperkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Mitra Adiperkasa.
Diversification Opportunities for Pembangunan Graha and Mitra Adiperkasa
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembangunan and Mitra is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Mitra Adiperkasa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Adiperkasa Tbk and Pembangunan Graha 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 Pembangunan Graha Lestari are associated (or correlated) with Mitra Adiperkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Adiperkasa Tbk has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Mitra Adiperkasa go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Mitra Adiperkasa
Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to under-perform the Mitra Adiperkasa. In addition to that, Pembangunan Graha is 1.39 times more volatile than Mitra Adiperkasa Tbk. It trades about -0.01 of its total potential returns per unit of risk. Mitra Adiperkasa Tbk is currently generating about 0.02 per unit of volatility. If you would invest 129,508 in Mitra Adiperkasa Tbk on September 19, 2024 and sell it today you would earn a total of 6,492 from holding Mitra Adiperkasa Tbk or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Mitra Adiperkasa Tbk
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Mitra Adiperkasa Tbk |
Pembangunan Graha and Mitra Adiperkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Mitra Adiperkasa
The main advantage of trading using opposite Pembangunan Graha and Mitra Adiperkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Mitra Adiperkasa 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 Adiperkasa will offset losses from the drop in Mitra Adiperkasa's long position.| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Pioneerindo Gourmet International |
| Mitra Adiperkasa vs. Pembangunan Graha Lestari | Mitra Adiperkasa vs. Pembangunan Jaya Ancol | Mitra Adiperkasa vs. Hotel Sahid Jaya | Mitra Adiperkasa vs. Mitrabara Adiperdana PT |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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