Correlation Between Mnc Kapital and Asuransi Multi
Can any of the company-specific risk be diversified away by investing in both Mnc Kapital and Asuransi Multi 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 Mnc Kapital and Asuransi Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mnc Kapital Indonesia and Asuransi Multi Artha, you can compare the effects of market volatilities on Mnc Kapital and Asuransi Multi 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 Mnc Kapital with a short position of Asuransi Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Kapital and Asuransi Multi.
Diversification Opportunities for Mnc Kapital and Asuransi Multi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mnc and Asuransi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Kapital Indonesia and Asuransi Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Multi Artha and Mnc Kapital 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 Mnc Kapital Indonesia are associated (or correlated) with Asuransi Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Multi Artha has no effect on the direction of Mnc Kapital i.e., Mnc Kapital and Asuransi Multi go up and down completely randomly.
Pair Corralation between Mnc Kapital and Asuransi Multi
Assuming the 90 days trading horizon Mnc Kapital Indonesia is expected to under-perform the Asuransi Multi. In addition to that, Mnc Kapital is 4.75 times more volatile than Asuransi Multi Artha. It trades about -0.14 of its total potential returns per unit of risk. Asuransi Multi Artha is currently generating about -0.19 per unit of volatility. If you would invest 34,400 in Asuransi Multi Artha on September 4, 2024 and sell it today you would lose (1,400) from holding Asuransi Multi Artha or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mnc Kapital Indonesia vs. Asuransi Multi Artha
Performance |
| Timeline |
| Mnc Kapital Indonesia |
| Asuransi Multi Artha |
Mnc Kapital and Asuransi Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Kapital and Asuransi Multi
The main advantage of trading using opposite Mnc Kapital and Asuransi Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Kapital position performs unexpectedly, Asuransi Multi 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 Asuransi Multi will offset losses from the drop in Asuransi Multi's long position.| Mnc Kapital vs. Pacific Strategic Financial | Mnc Kapital vs. Trinitan Metals and | Mnc Kapital vs. Dharma Polimetal Tbk | Mnc Kapital vs. Fast Food Indonesia |
| Asuransi Multi vs. Asuransi Bina Dana | Asuransi Multi vs. Asuransi Dayin Mitra | Asuransi Multi vs. Clipan Finance Indonesia | Asuransi Multi vs. Asuransi Harta Aman |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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