Correlation Between MD Pictures and Arkadia Digital
Can any of the company-specific risk be diversified away by investing in both MD Pictures and Arkadia Digital 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 Arkadia Digital 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 Arkadia Digital Media, you can compare the effects of market volatilities on MD Pictures and Arkadia Digital 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 Arkadia Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Arkadia Digital.
Diversification Opportunities for MD Pictures and Arkadia Digital
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FILM and Arkadia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and Arkadia Digital Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkadia Digital Media 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 Arkadia Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkadia Digital Media has no effect on the direction of MD Pictures i.e., MD Pictures and Arkadia Digital go up and down completely randomly.
Pair Corralation between MD Pictures and Arkadia Digital
Assuming the 90 days trading horizon MD Pictures Tbk is expected to generate 0.42 times more return on investment than Arkadia Digital. However, MD Pictures Tbk is 2.4 times less risky than Arkadia Digital. It trades about 0.12 of its potential returns per unit of risk. Arkadia Digital Media is currently generating about 0.02 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MD Pictures Tbk vs. Arkadia Digital Media
Performance |
| Timeline |
| MD Pictures Tbk |
| Arkadia Digital Media |
MD Pictures and Arkadia Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and Arkadia Digital
The main advantage of trading using opposite MD Pictures and Arkadia Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, Arkadia Digital 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 Arkadia Digital will offset losses from the drop in Arkadia Digital'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 |
| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |