Correlation Between Arkadia Digital and Global Mediacom
Can any of the company-specific risk be diversified away by investing in both Arkadia Digital and Global Mediacom 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 Arkadia Digital and Global Mediacom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkadia Digital Media and Global Mediacom Tbk, you can compare the effects of market volatilities on Arkadia Digital and Global Mediacom 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 Arkadia Digital with a short position of Global Mediacom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkadia Digital and Global Mediacom.
Diversification Opportunities for Arkadia Digital and Global Mediacom
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arkadia and Global is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Arkadia Digital Media and Global Mediacom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mediacom Tbk and Arkadia Digital 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 Arkadia Digital Media are associated (or correlated) with Global Mediacom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mediacom Tbk has no effect on the direction of Arkadia Digital i.e., Arkadia Digital and Global Mediacom go up and down completely randomly.
Pair Corralation between Arkadia Digital and Global Mediacom
Assuming the 90 days trading horizon Arkadia Digital Media is expected to generate 2.3 times more return on investment than Global Mediacom. However, Arkadia Digital is 2.3 times more volatile than Global Mediacom Tbk. It trades about 0.04 of its potential returns per unit of risk. Global Mediacom Tbk is currently generating about -0.06 per unit of risk. If you would invest 1,400 in Arkadia Digital Media on November 4, 2024 and sell it today you would earn a total of 200.00 from holding Arkadia Digital Media or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkadia Digital Media vs. Global Mediacom Tbk
Performance |
| Timeline |
| Arkadia Digital Media |
| Global Mediacom Tbk |
Arkadia Digital and Global Mediacom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkadia Digital and Global Mediacom
The main advantage of trading using opposite Arkadia Digital and Global Mediacom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkadia Digital position performs unexpectedly, Global Mediacom 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 Global Mediacom will offset losses from the drop in Global Mediacom's long position.| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
| Global Mediacom vs. Media Nusantara Citra | Global Mediacom vs. Mnc Investama Tbk | Global Mediacom vs. Akr Corporindo Tbk | Global Mediacom vs. Ciputra Development Tbk |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |