Correlation Between Mnc Sky and Surya Citra

Can any of the company-specific risk be diversified away by investing in both Mnc Sky and Surya Citra 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 Surya Citra 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 Surya Citra Media, you can compare the effects of market volatilities on Mnc Sky and Surya Citra 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 Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Sky and Surya Citra.

Diversification Opportunities for Mnc Sky and Surya Citra

-0.33

Correlation Coefficient

Mnc Sky  Surya Citra

Very good diversification

The 3 months correlation between Mnc and Surya is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Sky Vision and Surya Citra Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Citra Media 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 Surya Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Citra Media has no effect on the direction of Mnc Sky i.e., Mnc Sky and Surya Citra go up and down completely randomly.

Pair Corralation between Mnc Sky and Surya Citra

Assuming the 90 days trading horizon Mnc Sky Vision is expected to under-perform the Surya Citra. In addition to that, Mnc Sky is 2.4 times more volatile than Surya Citra Media. It trades about -0.01 of its total potential returns per unit of risk. Surya Citra Media is currently generating about -0.02 per unit of volatility. If you would invest  19,600  in Surya Citra Media on September 4, 2024 and sell it today you would lose (6,100) from holding Surya Citra Media or give up 31.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

Mnc Sky Vision  vs.  Surya Citra Media

Mnc Sky Vision

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mnc Sky Vision has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Surya Citra Media

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Surya Citra Media are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Surya Citra disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mnc Sky and Surya Citra

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

The idea behind Mnc Sky Vision and Surya Citra Media 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.