Correlation Between MNC Vision and Elang Mahkota
Can any of the company-specific risk be diversified away by investing in both MNC Vision and Elang Mahkota 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 MNC Vision and Elang Mahkota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MNC Vision Networks and Elang Mahkota Teknologi, you can compare the effects of market volatilities on MNC Vision and Elang Mahkota 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 MNC Vision with a short position of Elang Mahkota. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNC Vision and Elang Mahkota.
Diversification Opportunities for MNC Vision and Elang Mahkota
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MNC and Elang is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MNC Vision Networks and Elang Mahkota Teknologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elang Mahkota Teknologi and MNC Vision 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 MNC Vision Networks are associated (or correlated) with Elang Mahkota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elang Mahkota Teknologi has no effect on the direction of MNC Vision i.e., MNC Vision and Elang Mahkota go up and down completely randomly.
Pair Corralation between MNC Vision and Elang Mahkota
Assuming the 90 days trading horizon MNC Vision Networks is expected to under-perform the Elang Mahkota. In addition to that, MNC Vision is 1.09 times more volatile than Elang Mahkota Teknologi. It trades about -0.26 of its total potential returns per unit of risk. Elang Mahkota Teknologi is currently generating about -0.06 per unit of volatility. If you would invest 51,000 in Elang Mahkota Teknologi on August 25, 2024 and sell it today you would lose (2,600) from holding Elang Mahkota Teknologi or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNC Vision Networks vs. Elang Mahkota Teknologi
Performance |
| Timeline |
| MNC Vision Networks |
| Elang Mahkota Teknologi |
MNC Vision and Elang Mahkota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNC Vision and Elang Mahkota
The main advantage of trading using opposite MNC Vision and Elang Mahkota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNC Vision position performs unexpectedly, Elang Mahkota 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 Elang Mahkota will offset losses from the drop in Elang Mahkota's long position.| MNC Vision vs. Mnc Land Tbk | MNC Vision vs. MNC Studios International | MNC Vision vs. Puradelta Lestari PT | MNC Vision vs. Link Net Tbk |
| Elang Mahkota vs. Mnc Land Tbk | Elang Mahkota vs. MNC Vision Networks | Elang Mahkota vs. MD Pictures Tbk | Elang Mahkota vs. Link Net 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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