Correlation Between Mahaka Radio and Solusi Sinergi
Can any of the company-specific risk be diversified away by investing in both Mahaka Radio and Solusi Sinergi 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 Solusi Sinergi 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 Solusi Sinergi Digital, you can compare the effects of market volatilities on Mahaka Radio and Solusi Sinergi 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 Solusi Sinergi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaka Radio and Solusi Sinergi.
Diversification Opportunities for Mahaka Radio and Solusi Sinergi
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mahaka and Solusi is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mahaka Radio Integra and Solusi Sinergi Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solusi Sinergi Digital 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 Solusi Sinergi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solusi Sinergi Digital has no effect on the direction of Mahaka Radio i.e., Mahaka Radio and Solusi Sinergi go up and down completely randomly.
Pair Corralation between Mahaka Radio and Solusi Sinergi
Assuming the 90 days trading horizon Mahaka Radio Integra is expected to under-perform the Solusi Sinergi. In addition to that, Mahaka Radio is 1.26 times more volatile than Solusi Sinergi Digital. It trades about -0.03 of its total potential returns per unit of risk. Solusi Sinergi Digital is currently generating about 0.08 per unit of volatility. If you would invest 13,912 in Solusi Sinergi Digital on September 12, 2024 and sell it today you would earn a total of 27,888 from holding Solusi Sinergi Digital or generate 200.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mahaka Radio Integra vs. Solusi Sinergi Digital
Performance |
| Timeline |
| Mahaka Radio Integra |
| Solusi Sinergi Digital |
Mahaka Radio and Solusi Sinergi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaka Radio and Solusi Sinergi
The main advantage of trading using opposite Mahaka Radio and Solusi Sinergi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaka Radio position performs unexpectedly, Solusi Sinergi 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 Solusi Sinergi will offset losses from the drop in Solusi Sinergi's long position.| Mahaka Radio vs. Mahaka Media Tbk | Mahaka Radio vs. Sarana Meditama Metropolitan | Mahaka Radio vs. Surya Esa Perkasa | Mahaka Radio vs. Elang Mahkota Teknologi |
| Solusi Sinergi vs. DCI Indonesia Tbk | Solusi Sinergi vs. Digital Mediatama Maxima | Solusi Sinergi vs. Multipolar Technology Tbk | Solusi Sinergi vs. Bank Net 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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