Correlation Between Mnc Land and Jaya Real
Can any of the company-specific risk be diversified away by investing in both Mnc Land and Jaya Real 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 Jaya Real 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 Jaya Real Property, you can compare the effects of market volatilities on Mnc Land and Jaya Real 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 Jaya Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Land and Jaya Real.
Diversification Opportunities for Mnc Land and Jaya Real
Excellent diversification
The 3 months correlation between Mnc and Jaya is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Land Tbk and Jaya Real Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Real Property 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 Jaya Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Real Property has no effect on the direction of Mnc Land i.e., Mnc Land and Jaya Real go up and down completely randomly.
Pair Corralation between Mnc Land and Jaya Real
Assuming the 90 days trading horizon Mnc Land Tbk is expected to generate 3.75 times more return on investment than Jaya Real. However, Mnc Land is 3.75 times more volatile than Jaya Real Property. It trades about 0.06 of its potential returns per unit of risk. Jaya Real Property is currently generating about 0.12 per unit of risk. If you would invest 7,200 in Mnc Land Tbk on November 5, 2024 and sell it today you would earn a total of 6,700 from holding Mnc Land Tbk or generate 93.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnc Land Tbk vs. Jaya Real Property
Performance |
| Timeline |
| Mnc Land Tbk |
| Jaya Real Property |
Mnc Land and Jaya Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Land and Jaya Real
The main advantage of trading using opposite Mnc Land and Jaya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Land position performs unexpectedly, Jaya Real 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 Jaya Real will offset losses from the drop in Jaya Real's long position.| Mnc Land vs. Modernland Realty Ltd | Mnc Land vs. Jaya Real Property | Mnc Land vs. Lippo Cikarang Tbk | Mnc Land vs. Jakarta Int Hotels |
| Jaya Real vs. Lippo Cikarang Tbk | Jaya Real vs. Duta Pertiwi Tbk | Jaya Real vs. Intiland Development Tbk | Jaya Real vs. Mnc Land 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |