Correlation Between Bank Artos and MNC Studios
Can any of the company-specific risk be diversified away by investing in both Bank Artos and MNC Studios 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 Bank Artos and MNC Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Artos Indonesia and MNC Studios International, you can compare the effects of market volatilities on Bank Artos and MNC Studios 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 Bank Artos with a short position of MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Artos and MNC Studios.
Diversification Opportunities for Bank Artos and MNC Studios
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and MNC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank Artos Indonesia and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International and Bank Artos 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 Bank Artos Indonesia are associated (or correlated) with MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of Bank Artos i.e., Bank Artos and MNC Studios go up and down completely randomly.
Pair Corralation between Bank Artos and MNC Studios
Assuming the 90 days trading horizon Bank Artos is expected to generate 4.47 times less return on investment than MNC Studios. But when comparing it to its historical volatility, Bank Artos Indonesia is 1.81 times less risky than MNC Studios. It trades about 0.04 of its potential returns per unit of risk. MNC Studios International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 58,000 in MNC Studios International on September 1, 2024 and sell it today you would earn a total of 39,500 from holding MNC Studios International or generate 68.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Artos Indonesia vs. MNC Studios International
Performance |
| Timeline |
| Bank Artos Indonesia |
| MNC Studios International |
Bank Artos and MNC Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Artos and MNC Studios
The main advantage of trading using opposite Bank Artos and MNC Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Artos position performs unexpectedly, MNC Studios 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 MNC Studios will offset losses from the drop in MNC Studios' long position.| Bank Artos vs. Elang Mahkota Teknologi | Bank Artos vs. Bank Yudha Bhakti | Bank Artos vs. Bk Harda Internasional | Bank Artos vs. PT Bukalapak |
| MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. MD Pictures Tbk | MNC Studios vs. Link Net 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |