Correlation Between PT MNC and Singaraja Putra
Can any of the company-specific risk be diversified away by investing in both PT MNC and Singaraja Putra 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 Singaraja Putra 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 Singaraja Putra, you can compare the effects of market volatilities on PT MNC and Singaraja Putra 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 Singaraja Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT MNC and Singaraja Putra.
Diversification Opportunities for PT MNC and Singaraja Putra
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IATA and Singaraja is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT MNC Energy and Singaraja Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singaraja Putra 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 Singaraja Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singaraja Putra has no effect on the direction of PT MNC i.e., PT MNC and Singaraja Putra go up and down completely randomly.
Pair Corralation between PT MNC and Singaraja Putra
Assuming the 90 days trading horizon PT MNC Energy is expected to generate 0.43 times more return on investment than Singaraja Putra. However, PT MNC Energy is 2.32 times less risky than Singaraja Putra. It trades about 0.19 of its potential returns per unit of risk. Singaraja Putra is currently generating about -0.02 per unit of risk. If you would invest 3,900 in PT MNC Energy on August 31, 2024 and sell it today you would earn a total of 500.00 from holding PT MNC Energy or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT MNC Energy vs. Singaraja Putra
Performance |
| Timeline |
| PT MNC Energy |
| Singaraja Putra |
PT MNC and Singaraja Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT MNC and Singaraja Putra
The main advantage of trading using opposite PT MNC and Singaraja Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT MNC position performs unexpectedly, Singaraja Putra 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 Singaraja Putra will offset losses from the drop in Singaraja Putra'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 |
| Singaraja Putra vs. Indonesia Fibreboard Industry | Singaraja Putra vs. Slj Global Tbk | Singaraja Putra vs. Darmi Bersaudara Tbk | Singaraja Putra vs. Integra Indocabinet Tbk |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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