Correlation Between Petrosea Tbk and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Petrosea Tbk 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 Petrosea Tbk and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrosea Tbk and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on Petrosea Tbk 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 Petrosea Tbk with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrosea Tbk and Mitra Pinasthika.
Diversification Opportunities for Petrosea Tbk and Mitra Pinasthika
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petrosea and Mitra is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Petrosea 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 Petrosea Tbk 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 Petrosea 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 Petrosea Tbk i.e., Petrosea Tbk and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Petrosea Tbk and Mitra Pinasthika
Assuming the 90 days trading horizon Petrosea Tbk is expected to generate 3.43 times more return on investment than Mitra Pinasthika. However, Petrosea Tbk is 3.43 times more volatile than Mitra Pinasthika Mustika. It trades about 0.09 of its potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.03 per unit of risk. If you would invest 406,994 in Petrosea Tbk on August 30, 2024 and sell it today you would earn a total of 1,458,006 from holding Petrosea Tbk or generate 358.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Petrosea Tbk vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| Petrosea Tbk |
| Mitra Pinasthika Mustika |
Petrosea Tbk and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrosea Tbk and Mitra Pinasthika
The main advantage of trading using opposite Petrosea Tbk and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrosea Tbk 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.| Petrosea Tbk vs. Indika Energy Tbk | Petrosea Tbk vs. Harum Energy Tbk | Petrosea Tbk vs. Indo Tambangraya Megah | Petrosea Tbk vs. Gajah Tunggal Tbk |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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