Correlation Between Global Mediacom and Lini Imaji
Can any of the company-specific risk be diversified away by investing in both Global Mediacom and Lini Imaji 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 Global Mediacom and Lini Imaji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Mediacom Tbk and Lini Imaji Kreasi, you can compare the effects of market volatilities on Global Mediacom and Lini Imaji 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 Global Mediacom with a short position of Lini Imaji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Mediacom and Lini Imaji.
Diversification Opportunities for Global Mediacom and Lini Imaji
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Lini is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Global Mediacom Tbk and Lini Imaji Kreasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lini Imaji Kreasi and Global Mediacom 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 Global Mediacom Tbk are associated (or correlated) with Lini Imaji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lini Imaji Kreasi has no effect on the direction of Global Mediacom i.e., Global Mediacom and Lini Imaji go up and down completely randomly.
Pair Corralation between Global Mediacom and Lini Imaji
Assuming the 90 days trading horizon Global Mediacom Tbk is expected to under-perform the Lini Imaji. But the stock apears to be less risky and, when comparing its historical volatility, Global Mediacom Tbk is 6.05 times less risky than Lini Imaji. The stock trades about -0.25 of its potential returns per unit of risk. The Lini Imaji Kreasi is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 7,100 in Lini Imaji Kreasi on September 4, 2024 and sell it today you would earn a total of 9,600 from holding Lini Imaji Kreasi or generate 135.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Mediacom Tbk vs. Lini Imaji Kreasi
Performance |
| Timeline |
| Global Mediacom Tbk |
| Lini Imaji Kreasi |
Global Mediacom and Lini Imaji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Mediacom and Lini Imaji
The main advantage of trading using opposite Global Mediacom and Lini Imaji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Mediacom position performs unexpectedly, Lini Imaji 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 Lini Imaji will offset losses from the drop in Lini Imaji's long position.| Global Mediacom vs. Media Nusantara Citra | Global Mediacom vs. Mnc Investama Tbk | Global Mediacom vs. Akr Corporindo Tbk | Global Mediacom vs. Ciputra Development Tbk |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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