Correlation Between Mitra Pinasthika and Medco Energi
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Medco Energi 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 Pinasthika and Medco Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitra Pinasthika Mustika and Medco Energi Internasional, you can compare the effects of market volatilities on Mitra Pinasthika and Medco Energi 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 Pinasthika with a short position of Medco Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Medco Energi.
Diversification Opportunities for Mitra Pinasthika and Medco Energi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitra and Medco is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Medco Energi Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medco Energi Interna and Mitra Pinasthika 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 Pinasthika Mustika are associated (or correlated) with Medco Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medco Energi Interna has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Medco Energi go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Medco Energi
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.45 times more return on investment than Medco Energi. However, Mitra Pinasthika Mustika is 2.24 times less risky than Medco Energi. It trades about 0.01 of its potential returns per unit of risk. Medco Energi Internasional is currently generating about -0.04 per unit of risk. If you would invest 98,500 in Mitra Pinasthika Mustika on December 29, 2024 and sell it today you would earn a total of 500.00 from holding Mitra Pinasthika Mustika or generate 0.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mitra Pinasthika Mustika vs. Medco Energi Internasional
Performance |
Timeline |
Mitra Pinasthika Mustika |
Medco Energi Interna |
Mitra Pinasthika and Medco Energi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mitra Pinasthika and Medco Energi
The main advantage of trading using opposite Mitra Pinasthika and Medco Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Medco Energi 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 Medco Energi will offset losses from the drop in Medco Energi's long position.Mitra Pinasthika vs. Saratoga Investama Sedaya | Mitra Pinasthika vs. Puradelta Lestari PT | Mitra Pinasthika vs. Cikarang Listrindo Tbk | Mitra Pinasthika vs. Erajaya Swasembada Tbk |
Medco Energi vs. Vale Indonesia Tbk | Medco Energi vs. Timah Persero Tbk | Medco Energi vs. Perusahaan Gas Negara | Medco Energi vs. Bukit Asam 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Stocks Directory Find actively traded stocks across global markets |