Correlation Between Mahaka Radio and Elang Mahkota
Can any of the company-specific risk be diversified away by investing in both Mahaka Radio and Elang Mahkota 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 Elang Mahkota 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 Elang Mahkota Teknologi, you can compare the effects of market volatilities on Mahaka Radio and Elang Mahkota 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 Elang Mahkota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Radio and Elang Mahkota.
Diversification Opportunities for Mahaka Radio and Elang Mahkota
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mahaka and Elang is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Radio Integra and Elang Mahkota Teknologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elang Mahkota Teknologi 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 Elang Mahkota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elang Mahkota Teknologi has no effect on the direction of Mahaka Radio i.e., Mahaka Radio and Elang Mahkota go up and down completely randomly.
Pair Corralation between Mahaka Radio and Elang Mahkota
Assuming the 90 days trading horizon Mahaka Radio Integra is expected to generate 1.51 times more return on investment than Elang Mahkota. However, Mahaka Radio is 1.51 times more volatile than Elang Mahkota Teknologi. It trades about -0.02 of its potential returns per unit of risk. Elang Mahkota Teknologi is currently generating about -0.04 per unit of risk. If you would invest 12,400 in Mahaka Radio Integra on August 29, 2024 and sell it today you would lose (7,400) from holding Mahaka Radio Integra or give up 59.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Radio Integra vs. Elang Mahkota Teknologi
Performance |
| Timeline |
| Mahaka Radio Integra |
| Elang Mahkota Teknologi |
Mahaka Radio and Elang Mahkota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Radio and Elang Mahkota
The main advantage of trading using opposite Mahaka Radio and Elang Mahkota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Radio position performs unexpectedly, Elang Mahkota 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 Elang Mahkota will offset losses from the drop in Elang Mahkota's long position.| Mahaka Radio vs. Mnc Land Tbk | Mahaka Radio vs. MNC Vision Networks | Mahaka Radio vs. Medikaloka Hermina PT |
| Elang Mahkota vs. Mnc Land Tbk | Elang Mahkota vs. MNC Vision Networks | Elang Mahkota vs. Medikaloka Hermina PT |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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