Correlation Between Mnc Investama and Gajah Tunggal
Can any of the company-specific risk be diversified away by investing in both Mnc Investama and Gajah Tunggal 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 Gajah Tunggal 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 Gajah Tunggal Tbk, you can compare the effects of market volatilities on Mnc Investama and Gajah Tunggal 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 Gajah Tunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Investama and Gajah Tunggal.
Diversification Opportunities for Mnc Investama and Gajah Tunggal
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mnc and Gajah is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Investama Tbk and Gajah Tunggal Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gajah Tunggal Tbk 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 Gajah Tunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gajah Tunggal Tbk has no effect on the direction of Mnc Investama i.e., Mnc Investama and Gajah Tunggal go up and down completely randomly.
Pair Corralation between Mnc Investama and Gajah Tunggal
Assuming the 90 days trading horizon Mnc Investama Tbk is expected to under-perform the Gajah Tunggal. But the stock apears to be less risky and, when comparing its historical volatility, Mnc Investama Tbk is 1.27 times less risky than Gajah Tunggal. The stock trades about -0.02 of its potential returns per unit of risk. The Gajah Tunggal Tbk is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 54,146 in Gajah Tunggal Tbk on September 2, 2024 and sell it today you would earn a total of 59,854 from holding Gajah Tunggal Tbk or generate 110.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnc Investama Tbk vs. Gajah Tunggal Tbk
Performance |
| Timeline |
| Mnc Investama Tbk |
| Gajah Tunggal Tbk |
Mnc Investama and Gajah Tunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Investama and Gajah Tunggal
The main advantage of trading using opposite Mnc Investama and Gajah Tunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Investama position performs unexpectedly, Gajah Tunggal 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 Gajah Tunggal will offset losses from the drop in Gajah Tunggal's long position.| Mnc Investama vs. Global Mediacom Tbk | Mnc Investama vs. Sentul City Tbk | Mnc Investama vs. Kawasan Industri Jababeka | Mnc Investama vs. Energi Mega Persada |
| Gajah Tunggal vs. Japfa Comfeed Indonesia | Gajah Tunggal vs. Charoen Pokphand Indonesia | Gajah Tunggal vs. Erajaya Swasembada Tbk | Gajah Tunggal vs. Indofood Cbp Sukses |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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