Correlation Between Mitra Pinasthika and Graha Layar

Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Graha Layar 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 Graha Layar 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 Graha Layar Prima, you can compare the effects of market volatilities on Mitra Pinasthika and Graha Layar 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 Graha Layar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Graha Layar.

Diversification Opportunities for Mitra Pinasthika and Graha Layar

-0.04

Correlation Coefficient

Mitra Pinasthika  Graha Layar

Good diversification

The 3 months correlation between Mitra and Graha is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Graha Layar Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Layar Prima 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 Graha Layar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Layar Prima has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Graha Layar go up and down completely randomly.

Pair Corralation between Mitra Pinasthika and Graha Layar

If you would invest  200,000  in Graha Layar Prima on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Graha Layar Prima or generate 0.0% return on investment over 90 days.

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

Mitra Pinasthika Mustika  vs.  Graha Layar Prima

Mitra Pinasthika Mustika

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mitra Pinasthika Mustika has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Mitra Pinasthika is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Graha Layar Prima

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Graha Layar Prima are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Graha Layar may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mitra Pinasthika and Graha Layar

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

The idea behind Mitra Pinasthika Mustika and Graha Layar Prima 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.