Correlation Between Fortune Indonesia and Mahaka Media
Can any of the company-specific risk be diversified away by investing in both Fortune Indonesia and Mahaka Media 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 Fortune Indonesia and Mahaka Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Indonesia Tbk and Mahaka Media Tbk, you can compare the effects of market volatilities on Fortune Indonesia and Mahaka Media 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 Fortune Indonesia with a short position of Mahaka Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Indonesia and Mahaka Media.
Diversification Opportunities for Fortune Indonesia and Mahaka Media
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortune and Mahaka is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Indonesia Tbk and Mahaka Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Media Tbk and Fortune Indonesia 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 Fortune Indonesia Tbk are associated (or correlated) with Mahaka Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Media Tbk has no effect on the direction of Fortune Indonesia i.e., Fortune Indonesia and Mahaka Media go up and down completely randomly.
Pair Corralation between Fortune Indonesia and Mahaka Media
Assuming the 90 days trading horizon Fortune Indonesia Tbk is expected to generate 1.8 times more return on investment than Mahaka Media. However, Fortune Indonesia is 1.8 times more volatile than Mahaka Media Tbk. It trades about 0.18 of its potential returns per unit of risk. Mahaka Media Tbk is currently generating about -0.09 per unit of risk. If you would invest 16,800 in Fortune Indonesia Tbk on August 26, 2024 and sell it today you would earn a total of 490,700 from holding Fortune Indonesia Tbk or generate 2920.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortune Indonesia Tbk vs. Mahaka Media Tbk
Performance |
| Timeline |
| Fortune Indonesia Tbk |
| Mahaka Media Tbk |
Fortune Indonesia and Mahaka Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Indonesia and Mahaka Media
The main advantage of trading using opposite Fortune Indonesia and Mahaka Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Indonesia position performs unexpectedly, Mahaka Media 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 Media will offset losses from the drop in Mahaka Media's long position.| Fortune Indonesia vs. Gema Grahasarana Tbk | Fortune Indonesia vs. Bayu Buana Tbk | Fortune Indonesia vs. Fast Food Indonesia | Fortune Indonesia vs. Mahaka Media Tbk |
| Mahaka Media vs. Mnc Land Tbk | Mahaka Media vs. MNC Vision Networks | Mahaka Media vs. MD Pictures Tbk | Mahaka Media 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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