Correlation Between Mahaka Radio and Bhakti Multi
Can any of the company-specific risk be diversified away by investing in both Mahaka Radio and Bhakti Multi 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 Mahaka Radio and Bhakti Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mahaka Radio Integra and Bhakti Multi Artha, you can compare the effects of market volatilities on Mahaka Radio and Bhakti Multi 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 Mahaka Radio with a short position of Bhakti Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Radio and Bhakti Multi.
Diversification Opportunities for Mahaka Radio and Bhakti Multi
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mahaka and Bhakti is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Radio Integra and Bhakti Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhakti Multi Artha and Mahaka Radio 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 Mahaka Radio Integra are associated (or correlated) with Bhakti Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhakti Multi Artha has no effect on the direction of Mahaka Radio i.e., Mahaka Radio and Bhakti Multi go up and down completely randomly.
Pair Corralation between Mahaka Radio and Bhakti Multi
If you would invest 5,000 in Mahaka Radio Integra on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Mahaka Radio Integra or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Radio Integra vs. Bhakti Multi Artha
Performance |
| Timeline |
| Mahaka Radio Integra |
| Bhakti Multi Artha |
Mahaka Radio and Bhakti Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Radio and Bhakti Multi
The main advantage of trading using opposite Mahaka Radio and Bhakti Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Radio position performs unexpectedly, Bhakti Multi 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 Bhakti Multi will offset losses from the drop in Bhakti Multi's long position.| Mahaka Radio vs. Mnc Land Tbk | Mahaka Radio vs. MNC Vision Networks | Mahaka Radio vs. Medikaloka Hermina PT |
| Bhakti Multi vs. Metro Healthcare Indonesia | Bhakti Multi vs. Bintang Oto Global | Bhakti Multi vs. Surya Permata Andalan | Bhakti Multi vs. Capital Financial Indonesia |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |