Correlation Between Mnc Sky and Mahaka Radio
Can any of the company-specific risk be diversified away by investing in both Mnc Sky and Mahaka Radio 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 Sky and Mahaka Radio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mnc Sky Vision and Mahaka Radio Integra, you can compare the effects of market volatilities on Mnc Sky and Mahaka Radio 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 Sky with a short position of Mahaka Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Sky and Mahaka Radio.
Diversification Opportunities for Mnc Sky and Mahaka Radio
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mnc and Mahaka is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Sky Vision and Mahaka Radio Integra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Radio Integra and Mnc Sky 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 Sky Vision are associated (or correlated) with Mahaka Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Radio Integra has no effect on the direction of Mnc Sky i.e., Mnc Sky and Mahaka Radio go up and down completely randomly.
Pair Corralation between Mnc Sky and Mahaka Radio
Assuming the 90 days trading horizon Mnc Sky Vision is expected to generate 1.39 times more return on investment than Mahaka Radio. However, Mnc Sky is 1.39 times more volatile than Mahaka Radio Integra. It trades about -0.01 of its potential returns per unit of risk. Mahaka Radio Integra is currently generating about -0.03 per unit of risk. If you would invest 22,200 in Mnc Sky Vision on September 19, 2024 and sell it today you would lose (15,200) from holding Mnc Sky Vision or give up 68.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Mnc Sky Vision vs. Mahaka Radio Integra
Performance |
Timeline |
Mnc Sky Vision |
Mahaka Radio Integra |
Mnc Sky and Mahaka Radio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mnc Sky and Mahaka Radio
The main advantage of trading using opposite Mnc Sky and Mahaka Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Sky position performs unexpectedly, Mahaka Radio 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 Mahaka Radio will offset losses from the drop in Mahaka Radio's long position.Mnc Sky vs. Indofood Cbp Sukses | Mnc Sky vs. Cisarua Mountain Dairy | Mnc Sky vs. Metrodata Electronics Tbk | Mnc Sky vs. Humpuss Intermoda Transportasi |
Mahaka Radio vs. Mahaka Media Tbk | Mahaka Radio vs. Sarana Meditama Metropolitan | Mahaka Radio vs. Surya Esa Perkasa | Mahaka Radio vs. Elang Mahkota Teknologi |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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