Correlation Between Mnc Land and PT Sarana
Can any of the company-specific risk be diversified away by investing in both Mnc Land and PT Sarana 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 PT Sarana 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 PT Sarana Menara, you can compare the effects of market volatilities on Mnc Land and PT Sarana 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 PT Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Land and PT Sarana.
Diversification Opportunities for Mnc Land and PT Sarana
Modest diversification
The 3 months correlation between Mnc and TOWR is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Land Tbk and PT Sarana Menara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sarana Menara 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 PT Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sarana Menara has no effect on the direction of Mnc Land i.e., Mnc Land and PT Sarana go up and down completely randomly.
Pair Corralation between Mnc Land and PT Sarana
Assuming the 90 days trading horizon Mnc Land Tbk is expected to generate 3.96 times more return on investment than PT Sarana. However, Mnc Land is 3.96 times more volatile than PT Sarana Menara. It trades about -0.05 of its potential returns per unit of risk. PT Sarana Menara is currently generating about -0.45 per unit of risk. If you would invest 16,900 in Mnc Land Tbk on August 31, 2024 and sell it today you would lose (1,200) from holding Mnc Land Tbk or give up 7.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mnc Land Tbk vs. PT Sarana Menara
Performance |
| Timeline |
| Mnc Land Tbk |
| PT Sarana Menara |
Mnc Land and PT Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnc Land and PT Sarana
The main advantage of trading using opposite Mnc Land and PT Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Land position performs unexpectedly, PT Sarana 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 PT Sarana will offset losses from the drop in PT Sarana'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 |
| PT Sarana vs. Indosat Tbk | PT Sarana vs. XL Axiata Tbk | PT Sarana vs. Energi Mega Persada | PT Sarana vs. Bakrie Brothers 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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