Correlation Between MD Pictures and MNC Studios
Can any of the company-specific risk be diversified away by investing in both MD Pictures and MNC Studios 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 MNC Studios 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 MNC Studios International, you can compare the effects of market volatilities on MD Pictures and MNC Studios 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 MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and MNC Studios.
Diversification Opportunities for MD Pictures and MNC Studios
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FILM and MNC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International 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 MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of MD Pictures i.e., MD Pictures and MNC Studios go up and down completely randomly.
Pair Corralation between MD Pictures and MNC Studios
Assuming the 90 days trading horizon MD Pictures Tbk is expected to generate 0.9 times more return on investment than MNC Studios. However, MD Pictures Tbk is 1.11 times less risky than MNC Studios. It trades about 0.15 of its potential returns per unit of risk. MNC Studios International is currently generating about -0.28 per unit of risk. If you would invest 310,000 in MD Pictures Tbk on August 27, 2024 and sell it today you would earn a total of 39,000 from holding MD Pictures Tbk or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MD Pictures Tbk vs. MNC Studios International
Performance |
| Timeline |
| MD Pictures Tbk |
| MNC Studios International |
MD Pictures and MNC Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and MNC Studios
The main advantage of trading using opposite MD Pictures and MNC Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, MNC Studios 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 MNC Studios will offset losses from the drop in MNC Studios' 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 |
| MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. Medikaloka Hermina PT |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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