Correlation Between Mnc Land and First Media
Can any of the company-specific risk be diversified away by investing in both Mnc Land and First Media 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 First Media 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 First Media Tbk, you can compare the effects of market volatilities on Mnc Land and First Media 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 First Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Land and First Media.
Diversification Opportunities for Mnc Land and First Media
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mnc and First is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Land Tbk and First Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Media Tbk 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 First Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Media Tbk has no effect on the direction of Mnc Land i.e., Mnc Land and First Media go up and down completely randomly.
Pair Corralation between Mnc Land and First Media
Assuming the 90 days trading horizon Mnc Land Tbk is expected to generate 1.03 times more return on investment than First Media. However, Mnc Land is 1.03 times more volatile than First Media Tbk. It trades about 0.06 of its potential returns per unit of risk. First Media Tbk is currently generating about 0.01 per unit of risk. If you would invest 7,100 in Mnc Land Tbk on September 12, 2024 and sell it today you would earn a total of 8,100 from holding Mnc Land Tbk or generate 114.08% 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. First Media Tbk
Performance |
| Timeline |
| Mnc Land Tbk |
| First Media Tbk |
Mnc Land and First Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Land and First Media
The main advantage of trading using opposite Mnc Land and First Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Land position performs unexpectedly, First Media 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 First Media will offset losses from the drop in First Media's long position.| Mnc Land vs. Ciputra Development Tbk | Mnc Land vs. Bumi Serpong Damai | Mnc Land vs. Alam Sutera Realty | Mnc Land vs. Lippo Karawaci Tbk |
| First Media vs. Mnc Land Tbk | First Media vs. MNC Vision Networks | First Media vs. MD Pictures Tbk | First Media 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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