Correlation Between Mnc Investama and Kawasan Industri
Can any of the company-specific risk be diversified away by investing in both Mnc Investama and Kawasan Industri 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 Kawasan Industri 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 Kawasan Industri Jababeka, you can compare the effects of market volatilities on Mnc Investama and Kawasan Industri 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 Kawasan Industri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Investama and Kawasan Industri.
Diversification Opportunities for Mnc Investama and Kawasan Industri
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mnc and Kawasan is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Investama Tbk and Kawasan Industri Jababeka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasan Industri Jababeka 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 Kawasan Industri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasan Industri Jababeka has no effect on the direction of Mnc Investama i.e., Mnc Investama and Kawasan Industri go up and down completely randomly.
Pair Corralation between Mnc Investama and Kawasan Industri
Assuming the 90 days trading horizon Mnc Investama Tbk is expected to under-perform the Kawasan Industri. In addition to that, Mnc Investama is 2.23 times more volatile than Kawasan Industri Jababeka. It trades about -0.13 of its total potential returns per unit of risk. Kawasan Industri Jababeka is currently generating about 0.05 per unit of volatility. If you would invest 19,200 in Kawasan Industri Jababeka on August 25, 2024 and sell it today you would earn a total of 200.00 from holding Kawasan Industri Jababeka or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnc Investama Tbk vs. Kawasan Industri Jababeka
Performance |
| Timeline |
| Mnc Investama Tbk |
| Kawasan Industri Jababeka |
Mnc Investama and Kawasan Industri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Investama and Kawasan Industri
The main advantage of trading using opposite Mnc Investama and Kawasan Industri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Investama position performs unexpectedly, Kawasan Industri 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 Kawasan Industri will offset losses from the drop in Kawasan Industri'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 |
| Kawasan Industri vs. Ciputra Development Tbk | Kawasan Industri vs. Bumi Serpong Damai | Kawasan Industri vs. Alam Sutera Realty | Kawasan Industri vs. Lippo Karawaci 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |