Correlation Between Sentral Mitra and PT MNC
Can any of the company-specific risk be diversified away by investing in both Sentral Mitra 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 Sentral Mitra and PT MNC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentral Mitra Informatika and PT MNC Energy, you can compare the effects of market volatilities on Sentral Mitra 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 Sentral Mitra with a short position of PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentral Mitra and PT MNC.
Diversification Opportunities for Sentral Mitra and PT MNC
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sentral and IATA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sentral Mitra Informatika 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 Sentral Mitra 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 Sentral Mitra Informatika 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 Sentral Mitra i.e., Sentral Mitra and PT MNC go up and down completely randomly.
Pair Corralation between Sentral Mitra and PT MNC
Assuming the 90 days trading horizon Sentral Mitra Informatika is expected to generate 1.13 times more return on investment than PT MNC. However, Sentral Mitra is 1.13 times more volatile than PT MNC Energy. It trades about -0.02 of its potential returns per unit of risk. PT MNC Energy is currently generating about -0.02 per unit of risk. If you would invest 9,700 in Sentral Mitra Informatika on August 31, 2024 and sell it today you would lose (3,200) from holding Sentral Mitra Informatika or give up 32.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Sentral Mitra Informatika vs. PT MNC Energy
Performance |
| Timeline |
| Sentral Mitra Informatika |
| PT MNC Energy |
Sentral Mitra and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentral Mitra and PT MNC
The main advantage of trading using opposite Sentral Mitra and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentral Mitra 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.| Sentral Mitra vs. PT Dewi Shri | Sentral Mitra vs. Habco Trans Maritima | Sentral Mitra vs. PT Jhonlin Agro | Sentral Mitra vs. Autopedia Sukses Lestari |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |