Correlation Between GTS Internasional and PT MNC
Can any of the company-specific risk be diversified away by investing in both GTS Internasional and PT MNC 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 GTS Internasional and PT MNC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GTS Internasional Tbk and PT MNC Energy, you can compare the effects of market volatilities on GTS Internasional and PT MNC 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 GTS Internasional with a short position of PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTS Internasional and PT MNC.
Diversification Opportunities for GTS Internasional and PT MNC
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GTS and IATA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GTS Internasional Tbk and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy and GTS Internasional 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 GTS Internasional Tbk are associated (or correlated) with PT MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of GTS Internasional i.e., GTS Internasional and PT MNC go up and down completely randomly.
Pair Corralation between GTS Internasional and PT MNC
Assuming the 90 days trading horizon GTS Internasional Tbk is expected to under-perform the PT MNC. But the stock apears to be less risky and, when comparing its historical volatility, GTS Internasional Tbk is 1.43 times less risky than PT MNC. The stock trades about -0.27 of its potential returns per unit of risk. The PT MNC Energy is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,800 in PT MNC Energy on September 1, 2024 and sell it today you would earn a total of 600.00 from holding PT MNC Energy or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTS Internasional Tbk vs. PT MNC Energy
Performance |
| Timeline |
| GTS Internasional Tbk |
| PT MNC Energy |
GTS Internasional and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTS Internasional and PT MNC
The main advantage of trading using opposite GTS Internasional and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTS Internasional position performs unexpectedly, PT MNC 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 PT MNC will offset losses from the drop in PT MNC's long position.| GTS Internasional vs. Transcoal Pacific Tbk | GTS Internasional vs. PT Temas Tbk | GTS Internasional vs. Samudera Indonesia Tbk | GTS Internasional vs. Pelita Samudera Shipping |
| PT MNC vs. Mnc Investama Tbk | PT MNC vs. Exploitasi Energi Indonesia | PT MNC vs. Smartfren Telecom Tbk | PT MNC vs. Humpuss Intermoda Transportasi |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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