Correlation Between Graha Layar and MD Pictures
Can any of the company-specific risk be diversified away by investing in both Graha Layar and MD Pictures 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 Graha Layar and MD Pictures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graha Layar Prima and MD Pictures Tbk, you can compare the effects of market volatilities on Graha Layar and MD Pictures 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 Graha Layar with a short position of MD Pictures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graha Layar and MD Pictures.
Diversification Opportunities for Graha Layar and MD Pictures
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Graha and FILM is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Graha Layar Prima and MD Pictures Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MD Pictures Tbk and Graha Layar 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 Graha Layar Prima are associated (or correlated) with MD Pictures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MD Pictures Tbk has no effect on the direction of Graha Layar i.e., Graha Layar and MD Pictures go up and down completely randomly.
Pair Corralation between Graha Layar and MD Pictures
Assuming the 90 days trading horizon Graha Layar Prima is expected to under-perform the MD Pictures. But the stock apears to be less risky and, when comparing its historical volatility, Graha Layar Prima is 3.48 times less risky than MD Pictures. The stock trades about -0.32 of its potential returns per unit of risk. The MD Pictures Tbk is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 313,000 in MD Pictures Tbk on August 31, 2024 and sell it today you would earn a total of 39,000 from holding MD Pictures Tbk or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graha Layar Prima vs. MD Pictures Tbk
Performance |
| Timeline |
| Graha Layar Prima |
| MD Pictures Tbk |
Graha Layar and MD Pictures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graha Layar and MD Pictures
The main advantage of trading using opposite Graha Layar and MD Pictures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graha Layar position performs unexpectedly, MD Pictures 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 MD Pictures will offset losses from the drop in MD Pictures' long position.| Graha Layar vs. Electronic City Indonesia | Graha Layar vs. Bayu Buana Tbk | Graha Layar vs. Bintang Oto Global | Graha Layar vs. Garuda Metalindo Tbk |
| MD Pictures vs. MNC Studios International | MD Pictures vs. Elang Mahkota Teknologi | MD Pictures vs. Medikaloka Hermina PT | MD Pictures vs. Surya Esa Perkasa |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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