Correlation Between Mnc Investama and Multipolar Tbk
Can any of the company-specific risk be diversified away by investing in both Mnc Investama and Multipolar Tbk 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 Multipolar Tbk 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 Multipolar Tbk, you can compare the effects of market volatilities on Mnc Investama and Multipolar Tbk 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 Multipolar Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Investama and Multipolar Tbk.
Diversification Opportunities for Mnc Investama and Multipolar Tbk
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mnc and Multipolar is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Investama Tbk and Multipolar Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multipolar 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 Multipolar Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multipolar Tbk has no effect on the direction of Mnc Investama i.e., Mnc Investama and Multipolar Tbk go up and down completely randomly.
Pair Corralation between Mnc Investama and Multipolar Tbk
Assuming the 90 days trading horizon Mnc Investama Tbk is expected to under-perform the Multipolar Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Mnc Investama Tbk is 1.65 times less risky than Multipolar Tbk. The stock trades about -0.02 of its potential returns per unit of risk. The Multipolar Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,000 in Multipolar Tbk on August 29, 2024 and sell it today you would earn a total of 3,900 from holding Multipolar Tbk or generate 43.33% 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. Multipolar Tbk
Performance |
| Timeline |
| Mnc Investama Tbk |
| Multipolar Tbk |
Mnc Investama and Multipolar Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Investama and Multipolar Tbk
The main advantage of trading using opposite Mnc Investama and Multipolar Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Investama position performs unexpectedly, Multipolar Tbk 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 Multipolar Tbk will offset losses from the drop in Multipolar Tbk's long position.| Mnc Investama vs. Mnc Land Tbk | Mnc Investama vs. MNC Vision Networks | Mnc Investama vs. Medikaloka Hermina PT |
| Multipolar Tbk vs. Matahari Putra Prima | Multipolar Tbk vs. Mnc Investama Tbk | Multipolar Tbk vs. Kawasan Industri Jababeka | Multipolar Tbk 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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