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
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitra and Medco is 0.52. 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 under-perform the Medco Energi. But the stock apears to be less risky and, when comparing its historical volatility, Mitra Pinasthika Mustika is 3.45 times less risky than Medco Energi. The stock trades about -0.15 of its potential returns per unit of risk. The Medco Energi Internasional is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 105,000 in Medco Energi Internasional on December 2, 2024 and sell it today you would lose (3,000) from holding Medco Energi Internasional or give up 2.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |