Correlation Between Metropolitan Land and Aksara Global

Can any of the company-specific risk be diversified away by investing in both Metropolitan Land and Aksara Global 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 Metropolitan Land and Aksara Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Metropolitan Land Tbk and Aksara Global Development, you can compare the effects of market volatilities on Metropolitan Land and Aksara Global 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 Metropolitan Land with a short position of Aksara Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Land and Aksara Global.

Diversification Opportunities for Metropolitan Land and Aksara Global

0.0

Correlation Coefficient

Metropolitan Land  Aksara Global

Pay attention - limited upside

The 3 months correlation between Metropolitan and Aksara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Land Tbk and Aksara Global Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksara Global Development and Metropolitan Land 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 Metropolitan Land Tbk are associated (or correlated) with Aksara Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksara Global Development has no effect on the direction of Metropolitan Land i.e., Metropolitan Land and Aksara Global go up and down completely randomly.

Pair Corralation between Metropolitan Land and Aksara Global

If you would invest  1,800  in Aksara Global Development on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Aksara Global Development or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Metropolitan Land Tbk  vs.  Aksara Global Development

Metropolitan Land Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Metropolitan Land Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Metropolitan Land is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Aksara Global Development

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aksara Global Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Aksara Global is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Metropolitan Land and Aksara Global

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

The idea behind Metropolitan Land Tbk and Aksara Global Development 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.