Correlation Between Communication Cable and Mahaka Radio
Can any of the company-specific risk be diversified away by investing in both Communication Cable and Mahaka Radio 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 Communication Cable and Mahaka Radio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Communication Cable Systems and Mahaka Radio Integra, you can compare the effects of market volatilities on Communication Cable and Mahaka Radio 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 Communication Cable with a short position of Mahaka Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Communication Cable and Mahaka Radio.
Diversification Opportunities for Communication Cable and Mahaka Radio
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Communication and Mahaka is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Communication Cable Systems and Mahaka Radio Integra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Radio Integra and Communication Cable 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 Communication Cable Systems are associated (or correlated) with Mahaka Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Radio Integra has no effect on the direction of Communication Cable i.e., Communication Cable and Mahaka Radio go up and down completely randomly.
Pair Corralation between Communication Cable and Mahaka Radio
Assuming the 90 days trading horizon Communication Cable Systems is expected to under-perform the Mahaka Radio. But the stock apears to be less risky and, when comparing its historical volatility, Communication Cable Systems is 1.13 times less risky than Mahaka Radio. The stock trades about -0.01 of its potential returns per unit of risk. The Mahaka Radio Integra is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Mahaka Radio Integra on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Mahaka Radio Integra or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Communication Cable Systems vs. Mahaka Radio Integra
Performance |
| Timeline |
| Communication Cable |
| Mahaka Radio Integra |
Communication Cable and Mahaka Radio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Communication Cable and Mahaka Radio
The main advantage of trading using opposite Communication Cable and Mahaka Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Communication Cable position performs unexpectedly, Mahaka Radio 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 Mahaka Radio will offset losses from the drop in Mahaka Radio's long position.| Communication Cable vs. Berkah Prima Perkasa | Communication Cable vs. Hartadinata Abadi Tbk | Communication Cable vs. Estika Tata Tiara | Communication Cable vs. Garudafood Putra Putri |
| Mahaka Radio vs. Mahaka Media Tbk | Mahaka Radio vs. Sarana Meditama Metropolitan | Mahaka Radio vs. Surya Esa Perkasa | Mahaka Radio vs. Elang Mahkota Teknologi |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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