Correlation Between PT Mitra and Marks Spencer

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

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

Diversification Opportunities for PT Mitra and Marks Spencer

0.0

Correlation Coefficient

PT Mitra  Marks Spencer

Pay attention - limited upside

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

Pair Corralation between PT Mitra and Marks Spencer

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

PT Mitra Adiperkasa  vs.  Marks Spencer Group

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.

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.

Pair Trading with PT Mitra and Marks Spencer

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

The idea behind PT Mitra Adiperkasa and Marks Spencer Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.