Correlation Between Mahaka Media and Fks Multi
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Fks Multi 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 Fks Multi 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 Fks Multi Agro, you can compare the effects of market volatilities on Mahaka Media and Fks Multi 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 Fks Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Fks Multi.
Diversification Opportunities for Mahaka Media and Fks Multi
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mahaka and Fks is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Fks Multi Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fks Multi Agro 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 Fks Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fks Multi Agro has no effect on the direction of Mahaka Media i.e., Mahaka Media and Fks Multi go up and down completely randomly.
Pair Corralation between Mahaka Media and Fks Multi
If you would invest 1,035,000 in Fks Multi Agro on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Fks Multi Agro or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Fks Multi Agro
Performance |
| Timeline |
| Mahaka Media Tbk |
| Fks Multi Agro |
Mahaka Media and Fks Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Fks Multi
The main advantage of trading using opposite Mahaka Media and Fks Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Fks Multi 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 Fks Multi will offset losses from the drop in Fks Multi'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 |
| Fks Multi vs. Enseval Putra Megatrading | Fks Multi vs. Fast Food Indonesia | Fks Multi vs. Gema Grahasarana Tbk | Fks Multi vs. Colorpak Indonesia 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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