Correlation Between Link Net and Mahaka Media
Can any of the company-specific risk be diversified away by investing in both Link Net and Mahaka 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 Link Net and Mahaka Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Net Tbk and Mahaka Media Tbk, you can compare the effects of market volatilities on Link Net and Mahaka 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 Link Net with a short position of Mahaka Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Net and Mahaka Media.
Diversification Opportunities for Link Net and Mahaka Media
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Link and Mahaka is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Link Net Tbk and Mahaka Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Media Tbk and Link Net 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 Link Net Tbk are associated (or correlated) with Mahaka Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Media Tbk has no effect on the direction of Link Net i.e., Link Net and Mahaka Media go up and down completely randomly.
Pair Corralation between Link Net and Mahaka Media
Assuming the 90 days trading horizon Link Net Tbk is expected to generate 0.8 times more return on investment than Mahaka Media. However, Link Net Tbk is 1.26 times less risky than Mahaka Media. It trades about 0.0 of its potential returns per unit of risk. Mahaka Media Tbk is currently generating about -0.06 per unit of risk. If you would invest 131,500 in Link Net Tbk on September 13, 2024 and sell it today you would lose (2,500) from holding Link Net Tbk or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Net Tbk vs. Mahaka Media Tbk
Performance |
| Timeline |
| Link Net Tbk |
| Mahaka Media Tbk |
Link Net and Mahaka Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Net and Mahaka Media
The main advantage of trading using opposite Link Net and Mahaka Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Net position performs unexpectedly, Mahaka 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 Mahaka Media will offset losses from the drop in Mahaka Media's long position.| Link Net vs. Mitra Keluarga Karyasehat | Link Net vs. Surya Citra Media | Link Net vs. Matahari Department Store | Link Net vs. Puradelta Lestari PT |
| Mahaka Media vs. Mnc Land Tbk | Mahaka Media vs. MNC Vision Networks | Mahaka Media vs. MD Pictures Tbk | Mahaka 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |