Correlation Between Digital Mediatama and MNC Vision
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and MNC Vision 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 Digital Mediatama and MNC Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Mediatama Maxima and MNC Vision Networks, you can compare the effects of market volatilities on Digital Mediatama and MNC Vision 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 Digital Mediatama with a short position of MNC Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and MNC Vision.
Diversification Opportunities for Digital Mediatama and MNC Vision
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and MNC is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and MNC Vision Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Vision Networks and Digital Mediatama 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 Digital Mediatama Maxima are associated (or correlated) with MNC Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Vision Networks has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and MNC Vision go up and down completely randomly.
Pair Corralation between Digital Mediatama and MNC Vision
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 1.35 times more return on investment than MNC Vision. However, Digital Mediatama is 1.35 times more volatile than MNC Vision Networks. It trades about 0.03 of its potential returns per unit of risk. MNC Vision Networks is currently generating about -0.3 per unit of risk. If you would invest 21,800 in Digital Mediatama Maxima on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Digital Mediatama Maxima or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Mediatama Maxima vs. MNC Vision Networks
Performance |
| Timeline |
| Digital Mediatama Maxima |
| MNC Vision Networks |
Digital Mediatama and MNC Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and MNC Vision
The main advantage of trading using opposite Digital Mediatama and MNC Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, MNC Vision 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 Vision will offset losses from the drop in MNC Vision's long position.| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti |
| MNC Vision vs. Mnc Land Tbk | MNC Vision vs. MNC Studios International | MNC Vision vs. Puradelta Lestari PT | MNC Vision vs. Link Net 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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