Correlation Between Mahaka Media and Era Media
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Era Media 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 Era Media 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 Era Media Sejahtera, you can compare the effects of market volatilities on Mahaka Media and Era Media 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 Era Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Era Media.
Diversification Opportunities for Mahaka Media and Era Media
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mahaka and Era is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Era Media Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Media Sejahtera 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 Era Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Media Sejahtera has no effect on the direction of Mahaka Media i.e., Mahaka Media and Era Media go up and down completely randomly.
Pair Corralation between Mahaka Media and Era Media
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to generate 0.8 times more return on investment than Era Media. However, Mahaka Media Tbk is 1.25 times less risky than Era Media. It trades about -0.12 of its potential returns per unit of risk. Era Media Sejahtera is currently generating about -0.14 per unit of risk. If you would invest 2,400 in Mahaka Media Tbk on November 28, 2024 and sell it today you would lose (300.00) from holding Mahaka Media Tbk or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Era Media Sejahtera
Performance |
| Timeline |
| Mahaka Media Tbk |
| Era Media Sejahtera |
Mahaka Media and Era Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Era Media
The main advantage of trading using opposite Mahaka Media and Era Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Era Media 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 Era Media will offset losses from the drop in Era Media'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 |
| Era Media vs. Bank Central Asia | Era Media vs. Bank Rakyat Indonesia | Era Media vs. Bayan Resources Tbk | Era Media vs. Bank Mandiri Persero |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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