Correlation Between MD Pictures and Mahaka Radio
Can any of the company-specific risk be diversified away by investing in both MD Pictures and Mahaka Radio 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 Mahaka Radio 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 Mahaka Radio Integra, you can compare the effects of market volatilities on MD Pictures and Mahaka Radio 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 Mahaka Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Mahaka Radio.
Diversification Opportunities for MD Pictures and Mahaka Radio
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FILM and Mahaka is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and Mahaka Radio Integra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Radio Integra 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 Mahaka Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Radio Integra has no effect on the direction of MD Pictures i.e., MD Pictures and Mahaka Radio go up and down completely randomly.
Pair Corralation between MD Pictures and Mahaka Radio
Assuming the 90 days trading horizon MD Pictures Tbk is expected to generate 1.13 times more return on investment than Mahaka Radio. However, MD Pictures is 1.13 times more volatile than Mahaka Radio Integra. It trades about 0.04 of its potential returns per unit of risk. Mahaka Radio Integra is currently generating about -0.02 per unit of risk. If you would invest 222,634 in MD Pictures Tbk on August 25, 2024 and sell it today you would earn a total of 126,366 from holding MD Pictures Tbk or generate 56.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
MD Pictures Tbk vs. Mahaka Radio Integra
Performance |
| Timeline |
| MD Pictures Tbk |
| Mahaka Radio Integra |
MD Pictures and Mahaka Radio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and Mahaka Radio
The main advantage of trading using opposite MD Pictures and Mahaka Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, Mahaka Radio 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 Mahaka Radio will offset losses from the drop in Mahaka Radio'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 |
| Mahaka Radio vs. Mahaka Media Tbk | Mahaka Radio vs. Sarana Meditama Metropolitan | Mahaka Radio vs. Surya Esa Perkasa | Mahaka Radio vs. Elang Mahkota Teknologi |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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