Correlation Between Mahaka Media and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Bekasi Fajar 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 Bekasi Fajar 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 Bekasi Fajar Industrial, you can compare the effects of market volatilities on Mahaka Media and Bekasi Fajar 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 Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Bekasi Fajar.
Diversification Opportunities for Mahaka Media and Bekasi Fajar
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mahaka and Bekasi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial 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 Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Mahaka Media i.e., Mahaka Media and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Mahaka Media and Bekasi Fajar
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to generate 1.82 times more return on investment than Bekasi Fajar. However, Mahaka Media is 1.82 times more volatile than Bekasi Fajar Industrial. It trades about -0.13 of its potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about -0.27 per unit of risk. If you would invest 2,900 in Mahaka Media Tbk on September 2, 2024 and sell it today you would lose (300.00) from holding Mahaka Media Tbk or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Mahaka Media Tbk |
| Bekasi Fajar Industrial |
Mahaka Media and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Bekasi Fajar
The main advantage of trading using opposite Mahaka Media and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Bekasi Fajar 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 Bekasi Fajar will offset losses from the drop in Bekasi Fajar's long position.| Mahaka Media vs. Indosat Tbk | Mahaka Media vs. XL Axiata Tbk | Mahaka Media vs. Energi Mega Persada | Mahaka Media vs. Bakrie Brothers 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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