Correlation Between MD Pictures and Inti Bangun
Can any of the company-specific risk be diversified away by investing in both MD Pictures and Inti Bangun 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 Inti Bangun 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 Inti Bangun Sejahtera, you can compare the effects of market volatilities on MD Pictures and Inti Bangun 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 Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Inti Bangun.
Diversification Opportunities for MD Pictures and Inti Bangun
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between FILM and Inti is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and Inti Bangun Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inti Bangun 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 Inti Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inti Bangun Sejahtera has no effect on the direction of MD Pictures i.e., MD Pictures and Inti Bangun go up and down completely randomly.
Pair Corralation between MD Pictures and Inti Bangun
Assuming the 90 days trading horizon MD Pictures Tbk is expected to generate 1.74 times more return on investment than Inti Bangun. However, MD Pictures is 1.74 times more volatile than Inti Bangun Sejahtera. It trades about 0.02 of its potential returns per unit of risk. Inti Bangun Sejahtera is currently generating about 0.01 per unit of risk. If you would invest 364,762 in MD Pictures Tbk on September 12, 2024 and sell it today you would earn a total of 8,238 from holding MD Pictures Tbk or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
MD Pictures Tbk vs. Inti Bangun Sejahtera
Performance |
| Timeline |
| MD Pictures Tbk |
| Inti Bangun Sejahtera |
MD Pictures and Inti Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and Inti Bangun
The main advantage of trading using opposite MD Pictures and Inti Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, Inti Bangun 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 Inti Bangun will offset losses from the drop in Inti Bangun's long position.| MD Pictures vs. Mnc Land Tbk | MD Pictures vs. MNC Vision Networks | MD Pictures vs. Link Net Tbk | MD Pictures vs. Medikaloka Hermina PT |
| Inti Bangun vs. Mnc Land Tbk | Inti Bangun vs. MNC Vision Networks | Inti Bangun vs. MD Pictures Tbk | Inti Bangun 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 Stocks Directory module to find actively traded stocks across global markets.
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