Correlation Between Akr Corporindo and Global Mediacom
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Global Mediacom 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 Akr Corporindo and Global Mediacom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Global Mediacom Tbk, you can compare the effects of market volatilities on Akr Corporindo and Global Mediacom 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 Akr Corporindo with a short position of Global Mediacom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Global Mediacom.
Diversification Opportunities for Akr Corporindo and Global Mediacom
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akr and Global is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Global Mediacom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mediacom Tbk and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Global Mediacom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mediacom Tbk has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Global Mediacom go up and down completely randomly.
Pair Corralation between Akr Corporindo and Global Mediacom
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to under-perform the Global Mediacom. In addition to that, Akr Corporindo is 3.29 times more volatile than Global Mediacom Tbk. It trades about -0.05 of its total potential returns per unit of risk. Global Mediacom Tbk is currently generating about -0.15 per unit of volatility. If you would invest 18,800 in Global Mediacom Tbk on November 3, 2024 and sell it today you would lose (600.00) from holding Global Mediacom Tbk or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. Global Mediacom Tbk
Performance |
| Timeline |
| Akr Corporindo Tbk |
| Global Mediacom Tbk |
Akr Corporindo and Global Mediacom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and Global Mediacom
The main advantage of trading using opposite Akr Corporindo and Global Mediacom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Global Mediacom 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 Global Mediacom will offset losses from the drop in Global Mediacom's long position.| Akr Corporindo vs. Samudera Indonesia Tbk | Akr Corporindo vs. Weha Transportasi Indonesia | Akr Corporindo vs. Rig Tenders Tbk | Akr Corporindo vs. Total Bangun Persada |
| Global Mediacom vs. Media Nusantara Citra | Global Mediacom vs. Mnc Investama Tbk | Global Mediacom vs. Akr Corporindo Tbk | Global Mediacom vs. Ciputra Development 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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