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

-0.49

Correlation Coefficient

PT Mitra  Marks Spencer

Very good diversification

The 3 months correlation between PMDKF and Marks is -0.49. 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  618.00  in Marks Spencer Group on February 16, 2024 and sell it today you would earn a total of  75.00  from holding Marks Spencer Group or generate 12.14% return on investment over 90 days.

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

PT Mitra Adiperkasa  vs.  Marks Spencer Group

PT Mitra Adiperkasa

Risk-Adjusted Performance

0 of 100

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 latest uncertain performance, the Stock's forward-looking signals remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Marks Spencer Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marks Spencer Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Marks Spencer showed solid returns over the last few months and may actually be approaching a breakup point.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.