Correlation Between Bekasi Fajar and Mahaka Media
Can any of the company-specific risk be diversified away by investing in both Bekasi Fajar 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 Bekasi Fajar and Mahaka Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bekasi Fajar Industrial and Mahaka Media Tbk, you can compare the effects of market volatilities on Bekasi Fajar 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 Bekasi Fajar with a short position of Mahaka Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bekasi Fajar and Mahaka Media.
Diversification Opportunities for Bekasi Fajar and Mahaka Media
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bekasi and Mahaka is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bekasi Fajar Industrial 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 Bekasi Fajar 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 Bekasi Fajar Industrial 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 Bekasi Fajar i.e., Bekasi Fajar and Mahaka Media go up and down completely randomly.
Pair Corralation between Bekasi Fajar and Mahaka Media
Assuming the 90 days trading horizon Bekasi Fajar Industrial is expected to under-perform the Mahaka Media. But the stock apears to be less risky and, when comparing its historical volatility, Bekasi Fajar Industrial is 1.82 times less risky than Mahaka Media. The stock trades about -0.27 of its potential returns per unit of risk. The Mahaka Media Tbk is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Mahaka Media Tbk on September 2, 2024 and sell it today you would lose (300.00) from holding Mahaka Media Tbk or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bekasi Fajar Industrial vs. Mahaka Media Tbk
Performance |
| Timeline |
| Bekasi Fajar Industrial |
| Mahaka Media Tbk |
Bekasi Fajar and Mahaka Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bekasi Fajar and Mahaka Media
The main advantage of trading using opposite Bekasi Fajar and Mahaka Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bekasi Fajar 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.| Bekasi Fajar vs. Agung Podomoro Land | Bekasi Fajar vs. Surya Semesta Internusa | Bekasi Fajar vs. Alam Sutera Realty | Bekasi Fajar vs. Bumi Serpong Damai |
| Mahaka Media vs. Indosat Tbk | Mahaka Media vs. XL Axiata Tbk | Mahaka Media vs. Energi Mega Persada | Mahaka Media vs. Bakrie Brothers 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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