Correlation Between MNC Studios and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both MNC Studios and Autopedia Sukses 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 MNC Studios and Autopedia Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MNC Studios International and Autopedia Sukses Lestari, you can compare the effects of market volatilities on MNC Studios and Autopedia Sukses 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 MNC Studios with a short position of Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNC Studios and Autopedia Sukses.
Diversification Opportunities for MNC Studios and Autopedia Sukses
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MNC and Autopedia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding MNC Studios International and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari and MNC Studios 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 MNC Studios International are associated (or correlated) with Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of MNC Studios i.e., MNC Studios and Autopedia Sukses go up and down completely randomly.
Pair Corralation between MNC Studios and Autopedia Sukses
Assuming the 90 days trading horizon MNC Studios International is expected to under-perform the Autopedia Sukses. In addition to that, MNC Studios is 1.92 times more volatile than Autopedia Sukses Lestari. It trades about -0.2 of its total potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about -0.23 per unit of volatility. If you would invest 10,700 in Autopedia Sukses Lestari on September 14, 2024 and sell it today you would lose (2,500) from holding Autopedia Sukses Lestari or give up 23.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
MNC Studios International vs. Autopedia Sukses Lestari
Performance |
Timeline |
MNC Studios International |
Autopedia Sukses Lestari |
MNC Studios and Autopedia Sukses Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MNC Studios and Autopedia Sukses
The main advantage of trading using opposite MNC Studios and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNC Studios position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. MD Pictures Tbk | MNC Studios vs. Link Net Tbk |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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