Correlation Between Inocycle Technology and Media Nusantara
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and Media Nusantara 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 Inocycle Technology and Media Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inocycle Technology Tbk and Media Nusantara Citra, you can compare the effects of market volatilities on Inocycle Technology and Media Nusantara 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 Inocycle Technology with a short position of Media Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Media Nusantara.
Diversification Opportunities for Inocycle Technology and Media Nusantara
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inocycle and Media is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and Media Nusantara Citra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Nusantara Citra and Inocycle Technology 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 Inocycle Technology Tbk are associated (or correlated) with Media Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Nusantara Citra has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and Media Nusantara go up and down completely randomly.
Pair Corralation between Inocycle Technology and Media Nusantara
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to under-perform the Media Nusantara. In addition to that, Inocycle Technology is 1.03 times more volatile than Media Nusantara Citra. It trades about -0.08 of its total potential returns per unit of risk. Media Nusantara Citra is currently generating about 0.03 per unit of volatility. If you would invest 28,600 in Media Nusantara Citra on October 23, 2024 and sell it today you would earn a total of 200.00 from holding Media Nusantara Citra or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Media Nusantara Citra
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Media Nusantara Citra |
Inocycle Technology and Media Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Media Nusantara
The main advantage of trading using opposite Inocycle Technology and Media Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, Media Nusantara 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 Media Nusantara will offset losses from the drop in Media Nusantara's long position.| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
| Media Nusantara vs. Global Mediacom Tbk | Media Nusantara vs. Surya Citra Media | Media Nusantara vs. Akr Corporindo Tbk | Media Nusantara vs. Bumi Serpong Damai |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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