Correlation Between MD Pictures and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both MD Pictures and Bintang Oto 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 MD Pictures and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MD Pictures Tbk and Bintang Oto Global, you can compare the effects of market volatilities on MD Pictures and Bintang Oto 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 MD Pictures with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Bintang Oto.
Diversification Opportunities for MD Pictures and Bintang Oto
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FILM and Bintang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and MD Pictures 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 MD Pictures Tbk are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of MD Pictures i.e., MD Pictures and Bintang Oto go up and down completely randomly.
Pair Corralation between MD Pictures and Bintang Oto
Assuming the 90 days trading horizon MD Pictures Tbk is expected to generate 1.95 times more return on investment than Bintang Oto. However, MD Pictures is 1.95 times more volatile than Bintang Oto Global. It trades about 0.05 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.09 per unit of risk. If you would invest 219,652 in MD Pictures Tbk on August 27, 2024 and sell it today you would earn a total of 129,348 from holding MD Pictures Tbk or generate 58.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MD Pictures Tbk vs. Bintang Oto Global
Performance |
| Timeline |
| MD Pictures Tbk |
| Bintang Oto Global |
MD Pictures and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and Bintang Oto
The main advantage of trading using opposite MD Pictures and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| MD Pictures vs. MNC Studios International | MD Pictures vs. Elang Mahkota Teknologi | MD Pictures vs. Medikaloka Hermina PT | MD Pictures vs. Surya Esa Perkasa |
| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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