Correlation Between MAP Aktif and MNC Studios
Can any of the company-specific risk be diversified away by investing in both MAP Aktif and MNC Studios 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 MAP Aktif and MNC Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAP Aktif Adiperkasa and MNC Studios International, you can compare the effects of market volatilities on MAP Aktif and MNC Studios 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 MAP Aktif with a short position of MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAP Aktif and MNC Studios.
Diversification Opportunities for MAP Aktif and MNC Studios
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MAP and MNC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding MAP Aktif Adiperkasa and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International and MAP Aktif 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 MAP Aktif Adiperkasa are associated (or correlated) with MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of MAP Aktif i.e., MAP Aktif and MNC Studios go up and down completely randomly.
Pair Corralation between MAP Aktif and MNC Studios
Assuming the 90 days trading horizon MAP Aktif Adiperkasa is expected to under-perform the MNC Studios. But the stock apears to be less risky and, when comparing its historical volatility, MAP Aktif Adiperkasa is 1.85 times less risky than MNC Studios. The stock trades about -0.37 of its potential returns per unit of risk. The MNC Studios International is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 72,000 in MNC Studios International on November 28, 2024 and sell it today you would lose (13,500) from holding MNC Studios International or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
MAP Aktif Adiperkasa vs. MNC Studios International
Performance |
| Timeline |
| MAP Aktif Adiperkasa |
| MNC Studios International |
MAP Aktif and MNC Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAP Aktif and MNC Studios
The main advantage of trading using opposite MAP Aktif and MNC Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAP Aktif position performs unexpectedly, MNC Studios 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 Studios will offset losses from the drop in MNC Studios' long position.| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
| MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. MD Pictures Tbk | MNC Studios 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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