Correlation Between Sinergi Inti and MNC Vision
Can any of the company-specific risk be diversified away by investing in both Sinergi Inti 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 Sinergi Inti and MNC Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinergi Inti Plastindo and MNC Vision Networks, you can compare the effects of market volatilities on Sinergi Inti 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 Sinergi Inti with a short position of MNC Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and MNC Vision.
Diversification Opportunities for Sinergi Inti and MNC Vision
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinergi and MNC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo 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 Sinergi Inti 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 Sinergi Inti Plastindo 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 Sinergi Inti i.e., Sinergi Inti and MNC Vision go up and down completely randomly.
Pair Corralation between Sinergi Inti and MNC Vision
Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to generate 1.02 times more return on investment than MNC Vision. However, Sinergi Inti is 1.02 times more volatile than MNC Vision Networks. It trades about 0.09 of its potential returns per unit of risk. MNC Vision Networks is currently generating about 0.01 per unit of risk. If you would invest 2,200 in Sinergi Inti Plastindo on October 23, 2024 and sell it today you would earn a total of 100.00 from holding Sinergi Inti Plastindo or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sinergi Inti Plastindo vs. MNC Vision Networks
Performance |
| Timeline |
| Sinergi Inti Plastindo |
| MNC Vision Networks |
Sinergi Inti and MNC Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinergi Inti and MNC Vision
The main advantage of trading using opposite Sinergi Inti and MNC Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinergi Inti 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.| Sinergi Inti vs. Guna Timur Raya | Sinergi Inti vs. PT Trimuda Nuansa | Sinergi Inti vs. HK Metals Utama | Sinergi Inti vs. Royal Prima PT |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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