Correlation Between Mnc Land and Jakarta Int
Can any of the company-specific risk be diversified away by investing in both Mnc Land and Jakarta Int 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 Land and Jakarta Int into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mnc Land Tbk and Jakarta Int Hotels, you can compare the effects of market volatilities on Mnc Land and Jakarta Int 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 Land with a short position of Jakarta Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Land and Jakarta Int.
Diversification Opportunities for Mnc Land and Jakarta Int
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mnc and Jakarta is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Land Tbk and Jakarta Int Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jakarta Int Hotels and Mnc Land 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 Land Tbk are associated (or correlated) with Jakarta Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jakarta Int Hotels has no effect on the direction of Mnc Land i.e., Mnc Land and Jakarta Int go up and down completely randomly.
Pair Corralation between Mnc Land and Jakarta Int
Assuming the 90 days trading horizon Mnc Land is expected to generate 49.16 times less return on investment than Jakarta Int. But when comparing it to its historical volatility, Mnc Land Tbk is 2.32 times less risky than Jakarta Int. It trades about 0.02 of its potential returns per unit of risk. Jakarta Int Hotels is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 34,000 in Jakarta Int Hotels on August 30, 2024 and sell it today you would earn a total of 157,000 from holding Jakarta Int Hotels or generate 461.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnc Land Tbk vs. Jakarta Int Hotels
Performance |
| Timeline |
| Mnc Land Tbk |
| Jakarta Int Hotels |
Mnc Land and Jakarta Int Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Land and Jakarta Int
The main advantage of trading using opposite Mnc Land and Jakarta Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Land position performs unexpectedly, Jakarta Int 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 Jakarta Int will offset losses from the drop in Jakarta Int's long position.| Mnc Land vs. Bakrie Brothers Tbk | Mnc Land vs. Bakrie Sumatera Plantations | Mnc Land vs. Energi Mega Persada | Mnc Land vs. Darma Henwa Tbk |
| Jakarta Int vs. Jaya Real Property | Jakarta Int vs. Mnc Land Tbk | Jakarta Int vs. Kawasan Industri Jababeka | Jakarta Int vs. Duta Pertiwi 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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