Correlation Between Matahari Department and PT MNC
Can any of the company-specific risk be diversified away by investing in both Matahari Department and PT MNC 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 Matahari Department and PT MNC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matahari Department Store and PT MNC Energy, you can compare the effects of market volatilities on Matahari Department and PT MNC 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 Matahari Department with a short position of PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matahari Department and PT MNC.
Diversification Opportunities for Matahari Department and PT MNC
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Matahari and IATA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Matahari Department Store and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy and Matahari Department 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 Matahari Department Store are associated (or correlated) with PT MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of Matahari Department i.e., Matahari Department and PT MNC go up and down completely randomly.
Pair Corralation between Matahari Department and PT MNC
Assuming the 90 days trading horizon Matahari Department Store is expected to under-perform the PT MNC. But the stock apears to be less risky and, when comparing its historical volatility, Matahari Department Store is 2.31 times less risky than PT MNC. The stock trades about -0.36 of its potential returns per unit of risk. The PT MNC Energy is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,900 in PT MNC Energy on August 31, 2024 and sell it today you would earn a total of 500.00 from holding PT MNC Energy or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matahari Department Store vs. PT MNC Energy
Performance |
| Timeline |
| Matahari Department Store |
| PT MNC Energy |
Matahari Department and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matahari Department and PT MNC
The main advantage of trading using opposite Matahari Department and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matahari Department position performs unexpectedly, PT MNC 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 MNC will offset losses from the drop in PT MNC's long position.| Matahari Department vs. Surya Citra Media | Matahari Department vs. Akr Corporindo Tbk | Matahari Department vs. Media Nusantara Citra | Matahari Department vs. Pembangunan Perumahan PT |
| PT MNC vs. Matahari Department Store | PT MNC vs. Multi Medika Internasional | PT MNC vs. Visi Media Asia | PT MNC vs. Bayan Resources 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |