Correlation Between PT MNC and Slj Global
Can any of the company-specific risk be diversified away by investing in both PT MNC and Slj Global 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 Slj Global 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 Slj Global Tbk, you can compare the effects of market volatilities on PT MNC and Slj Global 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 Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT MNC and Slj Global.
Diversification Opportunities for PT MNC and Slj Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IATA and Slj is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PT MNC Energy and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global Tbk 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 Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of PT MNC i.e., PT MNC and Slj Global go up and down completely randomly.
Pair Corralation between PT MNC and Slj Global
Assuming the 90 days trading horizon PT MNC Energy is expected to generate 1.58 times more return on investment than Slj Global. However, PT MNC is 1.58 times more volatile than Slj Global Tbk. It trades about 0.19 of its potential returns per unit of risk. Slj Global Tbk is currently generating about -0.32 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT MNC Energy vs. Slj Global Tbk
Performance |
| Timeline |
| PT MNC Energy |
| Slj Global Tbk |
PT MNC and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT MNC and Slj Global
The main advantage of trading using opposite PT MNC and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT MNC position performs unexpectedly, Slj Global 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 Slj Global will offset losses from the drop in Slj Global'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 |
| Slj Global vs. Solusi Bangun Indonesia | Slj Global vs. Bakrie Sumatera Plantations | Slj Global vs. Total Bangun Persada | Slj Global vs. Berlian Laju Tanker |
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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