Correlation Between Shoprite Holdings and Mitra Adiperkasa
Can any of the company-specific risk be diversified away by investing in both Shoprite Holdings and Mitra Adiperkasa 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 Shoprite Holdings and Mitra Adiperkasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoprite Holdings Limited and Mitra Adiperkasa Tbk, you can compare the effects of market volatilities on Shoprite Holdings and Mitra Adiperkasa 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 Shoprite Holdings with a short position of Mitra Adiperkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoprite Holdings and Mitra Adiperkasa.
Diversification Opportunities for Shoprite Holdings and Mitra Adiperkasa
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shoprite and Mitra is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shoprite Holdings Limited and Mitra Adiperkasa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Adiperkasa Tbk and Shoprite Holdings 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 Shoprite Holdings Limited are associated (or correlated) with Mitra Adiperkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Adiperkasa Tbk has no effect on the direction of Shoprite Holdings i.e., Shoprite Holdings and Mitra Adiperkasa go up and down completely randomly.
Pair Corralation between Shoprite Holdings and Mitra Adiperkasa
If you would invest 2,403 in Mitra Adiperkasa Tbk on February 6, 2024 and sell it today you would earn a total of 0.00 from holding Mitra Adiperkasa Tbk or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Shoprite Holdings Limited vs. Mitra Adiperkasa Tbk
Performance |
Timeline |
Shoprite Holdings |
Mitra Adiperkasa Tbk |
Shoprite Holdings and Mitra Adiperkasa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shoprite Holdings and Mitra Adiperkasa
The main advantage of trading using opposite Shoprite Holdings and Mitra Adiperkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoprite Holdings position performs unexpectedly, Mitra Adiperkasa 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 Mitra Adiperkasa will offset losses from the drop in Mitra Adiperkasa's long position.Shoprite Holdings vs. Bank of America | Shoprite Holdings vs. CRA International | Shoprite Holdings vs. YPF Sociedad Anonima | Shoprite Holdings vs. Ecopetrol SA ADR |
Mitra Adiperkasa vs. Bank of America | Mitra Adiperkasa vs. CRA International | Mitra Adiperkasa vs. YPF Sociedad Anonima | Mitra Adiperkasa vs. Ecopetrol SA ADR |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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