Correlation Between Mega Manunggal and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both Mega Manunggal and Adhi Commuter 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 Mega Manunggal and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mega Manunggal Property and Adhi Commuter Properti, you can compare the effects of market volatilities on Mega Manunggal and Adhi Commuter 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 Mega Manunggal with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and Adhi Commuter.
Diversification Opportunities for Mega Manunggal and Adhi Commuter
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mega and Adhi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and Mega Manunggal 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 Mega Manunggal Property are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of Mega Manunggal i.e., Mega Manunggal and Adhi Commuter go up and down completely randomly.
Pair Corralation between Mega Manunggal and Adhi Commuter
If you would invest 5,000 in Adhi Commuter Properti on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Adhi Commuter Properti or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mega Manunggal Property vs. Adhi Commuter Properti
Performance |
| Timeline |
| Mega Manunggal Property |
| Adhi Commuter Properti |
Mega Manunggal and Adhi Commuter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mega Manunggal and Adhi Commuter
The main advantage of trading using opposite Mega Manunggal and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Manunggal position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.| Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan Land Tbk |
| Adhi Commuter vs. Pollux Properti Indonesia | Adhi Commuter vs. Maha Properti Indonesia | Adhi Commuter vs. Mega Manunggal Property | Adhi Commuter vs. Urban Jakarta Propertindo |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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