Correlation Between Mahaka Media and Gema Grahasarana
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Gema Grahasarana 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 Gema Grahasarana 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 Gema Grahasarana Tbk, you can compare the effects of market volatilities on Mahaka Media and Gema Grahasarana 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 Gema Grahasarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Gema Grahasarana.
Diversification Opportunities for Mahaka Media and Gema Grahasarana
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mahaka and Gema is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Gema Grahasarana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gema Grahasarana 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 Gema Grahasarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gema Grahasarana Tbk has no effect on the direction of Mahaka Media i.e., Mahaka Media and Gema Grahasarana go up and down completely randomly.
Pair Corralation between Mahaka Media and Gema Grahasarana
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to under-perform the Gema Grahasarana. But the stock apears to be less risky and, when comparing its historical volatility, Mahaka Media Tbk is 1.01 times less risky than Gema Grahasarana. The stock trades about -0.08 of its potential returns per unit of risk. The Gema Grahasarana Tbk is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 33,589 in Gema Grahasarana Tbk on August 29, 2024 and sell it today you would lose (10,189) from holding Gema Grahasarana Tbk or give up 30.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Gema Grahasarana Tbk
Performance |
| Timeline |
| Mahaka Media Tbk |
| Gema Grahasarana Tbk |
Mahaka Media and Gema Grahasarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Gema Grahasarana
The main advantage of trading using opposite Mahaka Media and Gema Grahasarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Gema Grahasarana 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 Gema Grahasarana will offset losses from the drop in Gema Grahasarana'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 |
| Gema Grahasarana vs. Fortune Indonesia Tbk | Gema Grahasarana vs. Fks Multi Agro | Gema Grahasarana vs. Bayu Buana Tbk | Gema Grahasarana vs. Fast Food Indonesia |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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