Correlation Between Pembangunan Graha and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha 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 Pembangunan Graha and Mitra Pinasthika 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 Pinasthika Mustika, you can compare the effects of market volatilities on Pembangunan Graha 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 Pembangunan Graha with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Mitra Pinasthika.
Diversification Opportunities for Pembangunan Graha and Mitra Pinasthika
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembangunan and Mitra is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari 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 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 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 Pembangunan Graha i.e., Pembangunan Graha and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Mitra Pinasthika
Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to under-perform the Mitra Pinasthika. In addition to that, Pembangunan Graha is 7.9 times more volatile than Mitra Pinasthika Mustika. It trades about -0.02 of its total potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about -0.06 per unit of volatility. If you would invest 100,000 in Mitra Pinasthika Mustika on September 13, 2024 and sell it today you would lose (500.00) from holding Mitra Pinasthika Mustika or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Mitra Pinasthika Mustika |
Pembangunan Graha and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Mitra Pinasthika
The main advantage of trading using opposite Pembangunan Graha and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha 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.| 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 Pinasthika vs. Pembangunan Graha Lestari | Mitra Pinasthika vs. Pembangunan Jaya Ancol | Mitra Pinasthika vs. Hotel Sahid Jaya | Mitra Pinasthika 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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