Correlation Between MD Pictures and Bali Bintang
Can any of the company-specific risk be diversified away by investing in both MD Pictures and Bali Bintang 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 Bali Bintang 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 Bali Bintang Sejahtera, you can compare the effects of market volatilities on MD Pictures and Bali Bintang 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 Bali Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Bali Bintang.
Diversification Opportunities for MD Pictures and Bali Bintang
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FILM and Bali is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and Bali Bintang Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bali Bintang Sejahtera 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 Bali Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bali Bintang Sejahtera has no effect on the direction of MD Pictures i.e., MD Pictures and Bali Bintang go up and down completely randomly.
Pair Corralation between MD Pictures and Bali Bintang
Assuming the 90 days trading horizon MD Pictures Tbk is expected to generate 1.07 times more return on investment than Bali Bintang. However, MD Pictures is 1.07 times more volatile than Bali Bintang Sejahtera. It trades about 0.12 of its potential returns per unit of risk. Bali Bintang Sejahtera is currently generating about -0.07 per unit of risk. If you would invest 387,000 in MD Pictures Tbk on November 3, 2024 and sell it today you would earn a total of 14,000 from holding MD Pictures Tbk or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MD Pictures Tbk vs. Bali Bintang Sejahtera
Performance |
| Timeline |
| MD Pictures Tbk |
| Bali Bintang Sejahtera |
MD Pictures and Bali Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and Bali Bintang
The main advantage of trading using opposite MD Pictures and Bali Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, Bali Bintang 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 Bali Bintang will offset losses from the drop in Bali Bintang'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 |
| Bali Bintang vs. MD Pictures Tbk | Bali Bintang vs. MNC Studios International | Bali Bintang vs. MNC Vision Networks | Bali Bintang vs. Digital Mediatama Maxima |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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