Correlation Between Citra Marga and Mnc Investama
Can any of the company-specific risk be diversified away by investing in both Citra Marga 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 Citra Marga and Mnc Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Marga Nusaphala and Mnc Investama Tbk, you can compare the effects of market volatilities on Citra Marga 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 Citra Marga with a short position of Mnc Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Marga and Mnc Investama.
Diversification Opportunities for Citra Marga and Mnc Investama
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citra and Mnc is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citra Marga Nusaphala 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 Citra Marga 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 Citra Marga Nusaphala 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 Citra Marga i.e., Citra Marga and Mnc Investama go up and down completely randomly.
Pair Corralation between Citra Marga and Mnc Investama
Assuming the 90 days trading horizon Citra Marga Nusaphala is expected to generate 5.59 times more return on investment than Mnc Investama. However, Citra Marga is 5.59 times more volatile than Mnc Investama Tbk. It trades about 0.66 of its potential returns per unit of risk. Mnc Investama Tbk is currently generating about -0.25 per unit of risk. If you would invest 140,000 in Citra Marga Nusaphala on November 4, 2024 and sell it today you would earn a total of 257,000 from holding Citra Marga Nusaphala or generate 183.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Citra Marga Nusaphala vs. Mnc Investama Tbk
Performance |
| Timeline |
| Citra Marga Nusaphala |
| Mnc Investama Tbk |
Citra Marga and Mnc Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Marga and Mnc Investama
The main advantage of trading using opposite Citra Marga and Mnc Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Marga 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.| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama Tbk |
| Mnc Investama vs. Global Mediacom Tbk | Mnc Investama vs. Sentul City Tbk | Mnc Investama vs. Kawasan Industri Jababeka | Mnc Investama vs. Energi Mega Persada |
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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