Correlation Between Mahaka Media and Arthavest Tbk
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Arthavest Tbk 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 Mahaka Media and Arthavest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mahaka Media Tbk and Arthavest Tbk, you can compare the effects of market volatilities on Mahaka Media and Arthavest Tbk 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 Mahaka Media with a short position of Arthavest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Arthavest Tbk.
Diversification Opportunities for Mahaka Media and Arthavest Tbk
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mahaka and Arthavest is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Arthavest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arthavest Tbk and Mahaka Media 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 Mahaka Media Tbk are associated (or correlated) with Arthavest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arthavest Tbk has no effect on the direction of Mahaka Media i.e., Mahaka Media and Arthavest Tbk go up and down completely randomly.
Pair Corralation between Mahaka Media and Arthavest Tbk
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to under-perform the Arthavest Tbk. In addition to that, Mahaka Media is 3.71 times more volatile than Arthavest Tbk. It trades about -0.08 of its total potential returns per unit of risk. Arthavest Tbk is currently generating about -0.06 per unit of volatility. If you would invest 266,681 in Arthavest Tbk on September 1, 2024 and sell it today you would lose (31,681) from holding Arthavest Tbk or give up 11.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.44% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Arthavest Tbk
Performance |
| Timeline |
| Mahaka Media Tbk |
| Arthavest Tbk |
Mahaka Media and Arthavest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Arthavest Tbk
The main advantage of trading using opposite Mahaka Media and Arthavest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Arthavest Tbk 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 Arthavest Tbk will offset losses from the drop in Arthavest Tbk's long position.| Mahaka Media vs. Akbar Indomakmur Stimec | Mahaka Media vs. Bayu Buana Tbk | Mahaka Media vs. Centratama Telekomunikasi Ind | Mahaka Media vs. Fortune Indonesia Tbk |
| Arthavest Tbk vs. Japfa Comfeed Indonesia | Arthavest Tbk vs. Charoen Pokphand Indonesia | Arthavest Tbk vs. Erajaya Swasembada Tbk | Arthavest Tbk vs. Indofood Cbp Sukses |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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