Correlation Between Energi Mega and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Energi Mega and Mnc Land 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 Energi Mega and Mnc Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energi Mega Persada and Mnc Land Tbk, you can compare the effects of market volatilities on Energi Mega and Mnc Land 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 Energi Mega with a short position of Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energi Mega and Mnc Land.
Diversification Opportunities for Energi Mega and Mnc Land
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Energi and Mnc is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Energi Mega Persada and Mnc Land Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Land Tbk and Energi Mega 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 Energi Mega Persada are associated (or correlated) with Mnc Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Land Tbk has no effect on the direction of Energi Mega i.e., Energi Mega and Mnc Land go up and down completely randomly.
Pair Corralation between Energi Mega and Mnc Land
Assuming the 90 days trading horizon Energi Mega Persada is expected to under-perform the Mnc Land. But the stock apears to be less risky and, when comparing its historical volatility, Energi Mega Persada is 1.14 times less risky than Mnc Land. The stock trades about -0.15 of its potential returns per unit of risk. The Mnc Land Tbk is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 16,700 in Mnc Land Tbk on September 2, 2024 and sell it today you would lose (1,400) from holding Mnc Land Tbk or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energi Mega Persada vs. Mnc Land Tbk
Performance |
| Timeline |
| Energi Mega Persada |
| Mnc Land Tbk |
Energi Mega and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energi Mega and Mnc Land
The main advantage of trading using opposite Energi Mega and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energi Mega position performs unexpectedly, Mnc Land 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 Land will offset losses from the drop in Mnc Land's long position.| Energi Mega vs. Mitrabahtera Segara Sejati | Energi Mega vs. Weha Transportasi Indonesia | Energi Mega vs. Rig Tenders Tbk |
| Mnc Land vs. Modernland Realty Ltd | Mnc Land vs. Jaya Real Property | Mnc Land vs. Lippo Cikarang Tbk | Mnc Land vs. Jakarta Int Hotels |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |