Correlation Between Mahaka Media and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Humpuss Intermoda 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 Humpuss Intermoda 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 Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Mahaka Media and Humpuss Intermoda 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 Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Humpuss Intermoda.
Diversification Opportunities for Mahaka Media and Humpuss Intermoda
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mahaka and Humpuss is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda 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 Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of Mahaka Media i.e., Mahaka Media and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Mahaka Media and Humpuss Intermoda
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to generate 0.44 times more return on investment than Humpuss Intermoda. However, Mahaka Media Tbk is 2.3 times less risky than Humpuss Intermoda. It trades about 0.45 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about -0.18 per unit of risk. If you would invest 2,500 in Mahaka Media Tbk on October 23, 2024 and sell it today you would earn a total of 300.00 from holding Mahaka Media Tbk or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Media Tbk vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Mahaka Media Tbk |
| Humpuss Intermoda |
Mahaka Media and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Humpuss Intermoda
The main advantage of trading using opposite Mahaka Media and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda'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 |
| Humpuss Intermoda vs. PT MNC Energy | Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Fortune Mate 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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