Correlation Between Mnc Investama and PT MNC
Can any of the company-specific risk be diversified away by investing in both Mnc Investama and PT MNC 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 PT MNC 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 PT MNC Energy, you can compare the effects of market volatilities on Mnc Investama and PT MNC 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 PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Investama and PT MNC.
Diversification Opportunities for Mnc Investama and PT MNC
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mnc and IATA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Investama Tbk and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy 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 PT MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of Mnc Investama i.e., Mnc Investama and PT MNC go up and down completely randomly.
Pair Corralation between Mnc Investama and PT MNC
Assuming the 90 days trading horizon Mnc Investama Tbk is expected to under-perform the PT MNC. But the stock apears to be less risky and, when comparing its historical volatility, Mnc Investama Tbk is 1.25 times less risky than PT MNC. The stock trades about -0.04 of its potential returns per unit of risk. The PT MNC Energy is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 9,600 in PT MNC Energy on November 4, 2024 and sell it today you would lose (4,700) from holding PT MNC Energy or give up 48.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mnc Investama Tbk vs. PT MNC Energy
Performance |
| Timeline |
| Mnc Investama Tbk |
| PT MNC Energy |
Mnc Investama and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Investama and PT MNC
The main advantage of trading using opposite Mnc Investama and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Investama position performs unexpectedly, PT MNC 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 PT MNC will offset losses from the drop in PT MNC'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 |
| PT MNC vs. Mnc Investama Tbk | PT MNC vs. Exploitasi Energi Indonesia | PT MNC vs. Smartfren Telecom Tbk | PT MNC vs. Humpuss Intermoda Transportasi |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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