Correlation Between Mahaka Radio and Sarana Meditama
Can any of the company-specific risk be diversified away by investing in both Mahaka Radio and Sarana Meditama 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 Sarana Meditama 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 Sarana Meditama Metropolitan, you can compare the effects of market volatilities on Mahaka Radio and Sarana Meditama 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 Sarana Meditama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Radio and Sarana Meditama.
Diversification Opportunities for Mahaka Radio and Sarana Meditama
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mahaka and Sarana is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Radio Integra and Sarana Meditama Metropolitan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarana Meditama Metr 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 Sarana Meditama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarana Meditama Metr has no effect on the direction of Mahaka Radio i.e., Mahaka Radio and Sarana Meditama go up and down completely randomly.
Pair Corralation between Mahaka Radio and Sarana Meditama
Assuming the 90 days trading horizon Mahaka Radio Integra is expected to under-perform the Sarana Meditama. In addition to that, Mahaka Radio is 1.56 times more volatile than Sarana Meditama Metropolitan. It trades about -0.02 of its total potential returns per unit of risk. Sarana Meditama Metropolitan is currently generating about 0.01 per unit of volatility. If you would invest 26,800 in Sarana Meditama Metropolitan on August 29, 2024 and sell it today you would lose (1,800) from holding Sarana Meditama Metropolitan or give up 6.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahaka Radio Integra vs. Sarana Meditama Metropolitan
Performance |
| Timeline |
| Mahaka Radio Integra |
| Sarana Meditama Metr |
Mahaka Radio and Sarana Meditama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Radio and Sarana Meditama
The main advantage of trading using opposite Mahaka Radio and Sarana Meditama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Radio position performs unexpectedly, Sarana Meditama 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 Sarana Meditama will offset losses from the drop in Sarana Meditama's long position.| Mahaka Radio vs. Mnc Land Tbk | Mahaka Radio vs. MNC Vision Networks | Mahaka Radio vs. Medikaloka Hermina PT |
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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.
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