Correlation Between Link Net and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Link Net and Mnc Land 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 Mnc Land 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 Mnc Land Tbk, you can compare the effects of market volatilities on Link Net and Mnc Land 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 Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Net and Mnc Land.
Diversification Opportunities for Link Net and Mnc Land
Very weak diversification
The 3 months correlation between Link and Mnc is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Link Net Tbk and Mnc Land Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Land 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 Mnc Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Land Tbk has no effect on the direction of Link Net i.e., Link Net and Mnc Land go up and down completely randomly.
Pair Corralation between Link Net and Mnc Land
Assuming the 90 days trading horizon Link Net Tbk is expected to under-perform the Mnc Land. But the stock apears to be less risky and, when comparing its historical volatility, Link Net Tbk is 1.05 times less risky than Mnc Land. The stock trades about -0.01 of its potential returns per unit of risk. The Mnc Land Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,400 in Mnc Land Tbk on August 24, 2024 and sell it today you would earn a total of 8,000 from holding Mnc Land Tbk or generate 108.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Net Tbk vs. Mnc Land Tbk
Performance |
| Timeline |
| Link Net Tbk |
| Mnc Land Tbk |
Link Net and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Net and Mnc Land
The main advantage of trading using opposite Link Net and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Net position performs unexpectedly, Mnc Land 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 Mnc Land will offset losses from the drop in Mnc Land's long position.| Link Net vs. Mnc Land Tbk | Link Net vs. MNC Vision Networks | Link Net vs. MD Pictures Tbk | Link Net vs. Medikaloka Hermina PT |
| Mnc Land vs. Agung Podomoro Land | Mnc Land vs. Surya Semesta Internusa | Mnc Land vs. Alam Sutera Realty | Mnc Land vs. Bumi Serpong Damai |
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 CEOs Directory module to screen CEOs from public companies around the world.
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