Correlation Between Delta Dunia and Mnc Investama
Can any of the company-specific risk be diversified away by investing in both Delta Dunia 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 Delta Dunia and Mnc Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Dunia Makmur and Mnc Investama Tbk, you can compare the effects of market volatilities on Delta Dunia 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 Delta Dunia with a short position of Mnc Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Mnc Investama.
Diversification Opportunities for Delta Dunia and Mnc Investama
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Delta and Mnc is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur 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 Delta Dunia 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 Delta Dunia Makmur 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 Delta Dunia i.e., Delta Dunia and Mnc Investama go up and down completely randomly.
Pair Corralation between Delta Dunia and Mnc Investama
Assuming the 90 days trading horizon Delta Dunia Makmur is expected to generate 1.38 times more return on investment than Mnc Investama. However, Delta Dunia is 1.38 times more volatile than Mnc Investama Tbk. It trades about 0.13 of its potential returns per unit of risk. Mnc Investama Tbk is currently generating about -0.17 per unit of risk. If you would invest 67,000 in Delta Dunia Makmur on August 29, 2024 and sell it today you would earn a total of 6,000 from holding Delta Dunia Makmur or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Dunia Makmur vs. Mnc Investama Tbk
Performance |
| Timeline |
| Delta Dunia Makmur |
| Mnc Investama Tbk |
Delta Dunia and Mnc Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Dunia and Mnc Investama
The main advantage of trading using opposite Delta Dunia and Mnc Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia 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.| Delta Dunia vs. Indika Energy Tbk | Delta Dunia vs. Elnusa Tbk | Delta Dunia vs. Harum Energy Tbk | Delta Dunia vs. Energi Mega Persada |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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