Correlation Between Akbar Indomakmur and Mahaka Media
Can any of the company-specific risk be diversified away by investing in both Akbar Indomakmur and Mahaka 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 Akbar Indomakmur and Mahaka Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbar Indomakmur Stimec and Mahaka Media Tbk, you can compare the effects of market volatilities on Akbar Indomakmur and Mahaka 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 Akbar Indomakmur with a short position of Mahaka Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbar Indomakmur and Mahaka Media.
Diversification Opportunities for Akbar Indomakmur and Mahaka Media
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akbar and Mahaka is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Akbar Indomakmur Stimec and Mahaka Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Media Tbk and Akbar Indomakmur 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 Akbar Indomakmur Stimec are associated (or correlated) with Mahaka Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Media Tbk has no effect on the direction of Akbar Indomakmur i.e., Akbar Indomakmur and Mahaka Media go up and down completely randomly.
Pair Corralation between Akbar Indomakmur and Mahaka Media
Assuming the 90 days trading horizon Akbar Indomakmur is expected to generate 1.5 times less return on investment than Mahaka Media. But when comparing it to its historical volatility, Akbar Indomakmur Stimec is 1.09 times less risky than Mahaka Media. It trades about 0.01 of its potential returns per unit of risk. Mahaka Media Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Mahaka Media Tbk on August 29, 2024 and sell it today you would lose (100.00) from holding Mahaka Media Tbk or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbar Indomakmur Stimec vs. Mahaka Media Tbk
Performance |
| Timeline |
| Akbar Indomakmur Stimec |
| Mahaka Media Tbk |
Akbar Indomakmur and Mahaka Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbar Indomakmur and Mahaka Media
The main advantage of trading using opposite Akbar Indomakmur and Mahaka Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbar Indomakmur position performs unexpectedly, Mahaka 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 Mahaka Media will offset losses from the drop in Mahaka Media's long position.| Akbar Indomakmur vs. Bayu Buana Tbk | Akbar Indomakmur vs. Alakasa Industrindo Tbk | Akbar Indomakmur vs. Mahaka Media Tbk | Akbar Indomakmur vs. Arthavest Tbk |
| Mahaka Media vs. Akbar Indomakmur Stimec | Mahaka Media vs. Bayu Buana Tbk | Mahaka Media vs. Centratama Telekomunikasi Ind | Mahaka Media vs. Fortune 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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