Correlation Between Mahaka Media and Sarana Meditama
Can any of the company-specific risk be diversified away by investing in both Mahaka Media and Sarana Meditama 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 Sarana Meditama 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 Sarana Meditama Metropolitan, you can compare the effects of market volatilities on Mahaka Media and Sarana Meditama 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 Sarana Meditama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Media and Sarana Meditama.
Diversification Opportunities for Mahaka Media and Sarana Meditama
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mahaka and Sarana is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Media Tbk and Sarana Meditama Metropolitan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarana Meditama Metr 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 Sarana Meditama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarana Meditama Metr has no effect on the direction of Mahaka Media i.e., Mahaka Media and Sarana Meditama go up and down completely randomly.
Pair Corralation between Mahaka Media and Sarana Meditama
Assuming the 90 days trading horizon Mahaka Media Tbk is expected to under-perform the Sarana Meditama. In addition to that, Mahaka Media is 1.55 times more volatile than Sarana Meditama Metropolitan. It trades about -0.14 of its total potential returns per unit of risk. Sarana Meditama Metropolitan is currently generating about -0.2 per unit of volatility. If you would invest 28,200 in Sarana Meditama Metropolitan on August 29, 2024 and sell it today you would lose (3,200) from holding Sarana Meditama Metropolitan or give up 11.35% 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. Sarana Meditama Metropolitan
Performance |
| Timeline |
| Mahaka Media Tbk |
| Sarana Meditama Metr |
Mahaka Media and Sarana Meditama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Media and Sarana Meditama
The main advantage of trading using opposite Mahaka Media and Sarana Meditama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Media position performs unexpectedly, Sarana Meditama 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 Sarana Meditama will offset losses from the drop in Sarana Meditama's long position.| Mahaka Media vs. Mnc Land Tbk | Mahaka Media vs. MNC Vision Networks | Mahaka Media vs. Medikaloka Hermina PT |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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