Correlation Between Trimegah Securities and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Trimegah Securities and Mitra Keluarga 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 Trimegah Securities and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Securities Tbk and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Trimegah Securities and Mitra Keluarga 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 Trimegah Securities with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Securities and Mitra Keluarga.
Diversification Opportunities for Trimegah Securities and Mitra Keluarga
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trimegah and Mitra is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Securities Tbk and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and Trimegah Securities 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 Trimegah Securities Tbk are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Trimegah Securities i.e., Trimegah Securities and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Trimegah Securities and Mitra Keluarga
Assuming the 90 days trading horizon Trimegah Securities Tbk is expected to generate 1.99 times more return on investment than Mitra Keluarga. However, Trimegah Securities is 1.99 times more volatile than Mitra Keluarga Karyasehat. It trades about 0.27 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.17 per unit of risk. If you would invest 30,000 in Trimegah Securities Tbk on September 4, 2024 and sell it today you would earn a total of 5,800 from holding Trimegah Securities Tbk or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Securities Tbk vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Trimegah Securities Tbk |
| Mitra Keluarga Karyasehat |
Trimegah Securities and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Securities and Mitra Keluarga
The main advantage of trading using opposite Trimegah Securities and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Securities position performs unexpectedly, Mitra Keluarga 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 Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
| Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Mitra Pinasthika Mustika | Mitra Keluarga vs. Jakarta Int Hotels |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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