Correlation Between Bhakti Multi and MNC Vision
Can any of the company-specific risk be diversified away by investing in both Bhakti Multi and MNC Vision 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 Bhakti Multi and MNC Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bhakti Multi Artha and MNC Vision Networks, you can compare the effects of market volatilities on Bhakti Multi and MNC Vision 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 Bhakti Multi with a short position of MNC Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhakti Multi and MNC Vision.
Diversification Opportunities for Bhakti Multi and MNC Vision
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bhakti and MNC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bhakti Multi Artha and MNC Vision Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Vision Networks and Bhakti Multi 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 Bhakti Multi Artha are associated (or correlated) with MNC Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Vision Networks has no effect on the direction of Bhakti Multi i.e., Bhakti Multi and MNC Vision go up and down completely randomly.
Pair Corralation between Bhakti Multi and MNC Vision
Assuming the 90 days trading horizon Bhakti Multi Artha is expected to generate 0.53 times more return on investment than MNC Vision. However, Bhakti Multi Artha is 1.89 times less risky than MNC Vision. It trades about -0.35 of its potential returns per unit of risk. MNC Vision Networks is currently generating about -0.21 per unit of risk. If you would invest 52,500 in Bhakti Multi Artha on August 28, 2024 and sell it today you would lose (7,500) from holding Bhakti Multi Artha or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bhakti Multi Artha vs. MNC Vision Networks
Performance |
| Timeline |
| Bhakti Multi Artha |
| MNC Vision Networks |
Bhakti Multi and MNC Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhakti Multi and MNC Vision
The main advantage of trading using opposite Bhakti Multi and MNC Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhakti Multi position performs unexpectedly, MNC Vision 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 Vision will offset losses from the drop in MNC Vision's long position.| Bhakti Multi vs. Metro Healthcare Indonesia | Bhakti Multi vs. Bintang Oto Global | Bhakti Multi vs. Surya Permata Andalan | Bhakti Multi vs. Capital Financial Indonesia |
| MNC Vision vs. Mnc Land Tbk | MNC Vision vs. MNC Studios International | MNC Vision vs. Puradelta Lestari PT | MNC Vision vs. Integra Indocabinet 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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