Correlation Between Kencana Energi and MNC Studios
Can any of the company-specific risk be diversified away by investing in both Kencana Energi and MNC Studios 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 Kencana Energi and MNC Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kencana Energi Lestari and MNC Studios International, you can compare the effects of market volatilities on Kencana Energi and MNC Studios 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 Kencana Energi with a short position of MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kencana Energi and MNC Studios.
Diversification Opportunities for Kencana Energi and MNC Studios
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kencana and MNC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kencana Energi Lestari and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International and Kencana Energi 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 Kencana Energi Lestari are associated (or correlated) with MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of Kencana Energi i.e., Kencana Energi and MNC Studios go up and down completely randomly.
Pair Corralation between Kencana Energi and MNC Studios
Assuming the 90 days trading horizon Kencana Energi is expected to generate 391.28 times less return on investment than MNC Studios. But when comparing it to its historical volatility, Kencana Energi Lestari is 22.2 times less risky than MNC Studios. It trades about 0.0 of its potential returns per unit of risk. MNC Studios International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 80,000 in MNC Studios International on September 1, 2024 and sell it today you would earn a total of 17,500 from holding MNC Studios International or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kencana Energi Lestari vs. MNC Studios International
Performance |
| Timeline |
| Kencana Energi Lestari |
| MNC Studios International |
Kencana Energi and MNC Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kencana Energi and MNC Studios
The main advantage of trading using opposite Kencana Energi and MNC Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kencana Energi position performs unexpectedly, MNC Studios 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 MNC Studios will offset losses from the drop in MNC Studios' long position.| Kencana Energi vs. PT Indonesia Kendaraan | Kencana Energi vs. Cikarang Listrindo Tbk | Kencana Energi vs. Jasa Armada Indonesia | Kencana Energi vs. Pelita Samudera Shipping |
| MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. MD Pictures Tbk | MNC Studios 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |