Correlation Between Mega Manunggal and Maha Properti
Can any of the company-specific risk be diversified away by investing in both Mega Manunggal and Maha Properti 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 Maha Properti 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 Maha Properti Indonesia, you can compare the effects of market volatilities on Mega Manunggal and Maha Properti 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 Maha Properti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and Maha Properti.
Diversification Opportunities for Mega Manunggal and Maha Properti
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mega and Maha is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property and Maha Properti Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maha Properti Indonesia 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 Maha Properti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maha Properti Indonesia has no effect on the direction of Mega Manunggal i.e., Mega Manunggal and Maha Properti go up and down completely randomly.
Pair Corralation between Mega Manunggal and Maha Properti
Assuming the 90 days trading horizon Mega Manunggal Property is expected to under-perform the Maha Properti. In addition to that, Mega Manunggal is 1.79 times more volatile than Maha Properti Indonesia. It trades about -0.19 of its total potential returns per unit of risk. Maha Properti Indonesia is currently generating about 0.01 per unit of volatility. If you would invest 201,000 in Maha Properti Indonesia on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Maha Properti Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mega Manunggal Property vs. Maha Properti Indonesia
Performance |
| Timeline |
| Mega Manunggal Property |
| Maha Properti Indonesia |
Mega Manunggal and Maha Properti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mega Manunggal and Maha Properti
The main advantage of trading using opposite Mega Manunggal and Maha Properti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Manunggal position performs unexpectedly, Maha Properti 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 Maha Properti will offset losses from the drop in Maha Properti'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 |
| Maha Properti vs. Pollux Properti Indonesia | Maha Properti vs. Jaya Sukses Makmur | Maha Properti vs. Metropolitan Kentjana Tbk | Maha Properti vs. Pollux Investasi Internasional |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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