Correlation Between Marks Spencer and PT Mitra

Can any of the company-specific risk be diversified away by investing in both Marks Spencer and PT Mitra 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 Marks Spencer and PT Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marks Spencer Group and PT Mitra Adiperkasa, you can compare the effects of market volatilities on Marks Spencer and PT Mitra 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 Marks Spencer with a short position of PT Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks Spencer and PT Mitra.

Diversification Opportunities for Marks Spencer and PT Mitra

0.0

Correlation Coefficient

Marks Spencer  PT Mitra

Pay attention - limited upside

The 3 months correlation between Marks and PMDKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marks Spencer Group and PT Mitra Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mitra Adiperkasa and Marks Spencer 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 Marks Spencer Group are associated (or correlated) with PT Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mitra Adiperkasa has no effect on the direction of Marks Spencer i.e., Marks Spencer and PT Mitra go up and down completely randomly.

Pair Corralation between Marks Spencer and PT Mitra

If you would invest  948.00  in Marks Spencer Group on December 29, 2024 and sell it today you would lose (8.00) from holding Marks Spencer Group or give up 0.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Marks Spencer Group  vs.  PT Mitra Adiperkasa

Marks Spencer Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marks Spencer Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Marks Spencer is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

PT Mitra Adiperkasa

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Mitra Adiperkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, PT Mitra is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Marks Spencer and PT Mitra

The main advantage of trading using opposite Marks Spencer and PT Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks Spencer position performs unexpectedly, PT Mitra 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 PT Mitra will offset losses from the drop in PT Mitra's long position.

The idea behind Marks Spencer Group and PT Mitra Adiperkasa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.