Correlation Between Mitra Keluarga and MAP Aktif

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

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

Diversification Opportunities for Mitra Keluarga and MAP Aktif

-0.73

Correlation Coefficient

Mitra Keluarga  MAP Aktif

Pay attention - limited upside

The 3 months correlation between Mitra and MAP is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Keluarga Karyasehat and MAP Aktif Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAP Aktif Adiperkasa and Mitra Keluarga 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 Mitra Keluarga Karyasehat are associated (or correlated) with MAP Aktif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAP Aktif Adiperkasa has no effect on the direction of Mitra Keluarga i.e., Mitra Keluarga and MAP Aktif go up and down completely randomly.

Pair Corralation between Mitra Keluarga and MAP Aktif

Assuming the 90 days trading horizon Mitra Keluarga Karyasehat is expected to under-perform the MAP Aktif. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Keluarga Karyasehat is 1.69 times less risky than MAP Aktif. The stock trades about -0.09 of its potential returns per unit of risk. The MAP Aktif Adiperkasa is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  88,000  in MAP Aktif Adiperkasa on September 5, 2024 and sell it today you would earn a total of  16,500  from holding MAP Aktif Adiperkasa or generate 18.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Mitra Keluarga Karyasehat  vs.  MAP Aktif Adiperkasa

Mitra Keluarga Karyasehat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mitra Keluarga Karyasehat has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

MAP Aktif Adiperkasa

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MAP Aktif Adiperkasa are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, MAP Aktif disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mitra Keluarga and MAP Aktif

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

The idea behind Mitra Keluarga Karyasehat and MAP Aktif 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.