Correlation Between PT MNC and Jasa Armada
Can any of the company-specific risk be diversified away by investing in both PT MNC and Jasa Armada 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 PT MNC and Jasa Armada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT MNC Energy and Jasa Armada Indonesia, you can compare the effects of market volatilities on PT MNC and Jasa Armada 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 PT MNC with a short position of Jasa Armada. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT MNC and Jasa Armada.
Diversification Opportunities for PT MNC and Jasa Armada
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between IATA and Jasa is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding PT MNC Energy and Jasa Armada Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Armada Indonesia and PT MNC 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 PT MNC Energy are associated (or correlated) with Jasa Armada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Armada Indonesia has no effect on the direction of PT MNC i.e., PT MNC and Jasa Armada go up and down completely randomly.
Pair Corralation between PT MNC and Jasa Armada
Assuming the 90 days trading horizon PT MNC Energy is expected to generate 5.99 times more return on investment than Jasa Armada. However, PT MNC is 5.99 times more volatile than Jasa Armada Indonesia. It trades about 0.24 of its potential returns per unit of risk. Jasa Armada Indonesia is currently generating about 0.0 per unit of risk. If you would invest 3,800 in PT MNC Energy on September 2, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT MNC Energy vs. Jasa Armada Indonesia
Performance |
| Timeline |
| PT MNC Energy |
| Jasa Armada Indonesia |
PT MNC and Jasa Armada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT MNC and Jasa Armada
The main advantage of trading using opposite PT MNC and Jasa Armada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT MNC position performs unexpectedly, Jasa Armada 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 Jasa Armada will offset losses from the drop in Jasa Armada's long position.| PT MNC vs. Matahari Department Store | PT MNC vs. Multi Medika Internasional | PT MNC vs. Visi Media Asia | PT MNC vs. Bayan Resources Tbk |
| Jasa Armada vs. PT Indonesia Kendaraan | Jasa Armada vs. PP Presisi Tbk | Jasa Armada vs. Cikarang Listrindo Tbk | Jasa Armada vs. Pelita Samudera Shipping |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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