Correlation Between Mnc Investama and Energi Mega
Can any of the company-specific risk be diversified away by investing in both Mnc Investama and Energi Mega 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 Investama and Energi Mega into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mnc Investama Tbk and Energi Mega Persada, you can compare the effects of market volatilities on Mnc Investama and Energi Mega 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 Investama with a short position of Energi Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Investama and Energi Mega.
Diversification Opportunities for Mnc Investama and Energi Mega
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mnc and Energi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Investama Tbk and Energi Mega Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energi Mega Persada and Mnc Investama 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 Investama Tbk are associated (or correlated) with Energi Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energi Mega Persada has no effect on the direction of Mnc Investama i.e., Mnc Investama and Energi Mega go up and down completely randomly.
Pair Corralation between Mnc Investama and Energi Mega
Assuming the 90 days trading horizon Mnc Investama Tbk is expected to under-perform the Energi Mega. But the stock apears to be less risky and, when comparing its historical volatility, Mnc Investama Tbk is 1.65 times less risky than Energi Mega. The stock trades about -0.18 of its potential returns per unit of risk. The Energi Mega Persada is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 27,600 in Energi Mega Persada on August 29, 2024 and sell it today you would lose (1,800) from holding Energi Mega Persada or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnc Investama Tbk vs. Energi Mega Persada
Performance |
| Timeline |
| Mnc Investama Tbk |
| Energi Mega Persada |
Mnc Investama and Energi Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Investama and Energi Mega
The main advantage of trading using opposite Mnc Investama and Energi Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Investama position performs unexpectedly, Energi Mega 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 Energi Mega will offset losses from the drop in Energi Mega's long position.| Mnc Investama vs. Mnc Land Tbk | Mnc Investama vs. MNC Vision Networks | Mnc Investama vs. Medikaloka Hermina PT |
| Energi Mega vs. Bakrieland Development Tbk | Energi Mega vs. Bakrie Sumatera Plantations | Energi Mega vs. Bakrie Brothers Tbk | Energi Mega vs. Bumi Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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