Correlation Between Sentul City and Mnc Investama
Can any of the company-specific risk be diversified away by investing in both Sentul City and Mnc Investama 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 Sentul City and Mnc Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentul City Tbk and Mnc Investama Tbk, you can compare the effects of market volatilities on Sentul City and Mnc Investama 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 Sentul City with a short position of Mnc Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentul City and Mnc Investama.
Diversification Opportunities for Sentul City and Mnc Investama
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sentul and Mnc is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sentul City Tbk and Mnc Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Investama Tbk and Sentul City 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 Sentul City Tbk are associated (or correlated) with Mnc Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Investama Tbk has no effect on the direction of Sentul City i.e., Sentul City and Mnc Investama go up and down completely randomly.
Pair Corralation between Sentul City and Mnc Investama
Assuming the 90 days trading horizon Sentul City Tbk is expected to under-perform the Mnc Investama. In addition to that, Sentul City is 1.13 times more volatile than Mnc Investama Tbk. It trades about -0.26 of its total potential returns per unit of risk. Mnc Investama Tbk is currently generating about -0.18 per unit of volatility. If you would invest 4,200 in Mnc Investama Tbk on August 28, 2024 and sell it today you would lose (400.00) from holding Mnc Investama Tbk or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentul City Tbk vs. Mnc Investama Tbk
Performance |
| Timeline |
| Sentul City Tbk |
| Mnc Investama Tbk |
Sentul City and Mnc Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentul City and Mnc Investama
The main advantage of trading using opposite Sentul City and Mnc Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentul City position performs unexpectedly, Mnc Investama 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 Mnc Investama will offset losses from the drop in Mnc Investama's long position.| Sentul City vs. Alam Sutera Realty | Sentul City vs. Kawasan Industri Jababeka | Sentul City vs. Lippo Karawaci Tbk | Sentul City vs. Ciputra Development Tbk |
| Mnc Investama vs. Mnc Land Tbk | Mnc Investama vs. MNC Vision Networks | Mnc Investama vs. Medikaloka Hermina PT |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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