Correlation Between Mahaka Media and Cipta Selera
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Cipta Selera 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 Cipta Selera 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 Cipta Selera Murni, you can compare the effects of market volatilities on Mahaka Media and Cipta Selera 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 Cipta Selera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Cipta Selera.
Diversification Opportunities for Mahaka Media and Cipta Selera
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mahaka and Cipta is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Cipta Selera Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipta Selera Murni 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 Cipta Selera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipta Selera Murni has no effect on the direction of Mahaka Media i.e., Mahaka Media and Cipta Selera go up and down completely randomly.
Pair Corralation between Mahaka Media and Cipta Selera
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to under-perform the Cipta Selera. In addition to that, Mahaka Media is 1.31 times more volatile than Cipta Selera Murni. It trades about -0.12 of its total potential returns per unit of risk. Cipta Selera Murni is currently generating about 0.06 per unit of volatility. If you would invest 308,000 in Cipta Selera Murni on November 28, 2024 and sell it today you would earn a total of 9,000 from holding Cipta Selera Murni or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Cipta Selera Murni
Performance |
| Timeline |
| Mahaka Media Tbk |
| Cipta Selera Murni |
Mahaka Media and Cipta Selera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Cipta Selera
The main advantage of trading using opposite Mahaka Media and Cipta Selera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Cipta Selera 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 Cipta Selera will offset losses from the drop in Cipta Selera'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 |
| Cipta Selera vs. Optima Prima Metal | Cipta Selera vs. HK Metals Utama | Cipta Selera vs. Envy Technologies Indonesia | Cipta Selera vs. Indosterling Technomedia Tbk |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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