Correlation Between Mega Manunggal and Shield On
Can any of the company-specific risk be diversified away by investing in both Mega Manunggal and Shield On 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 Shield On 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 Shield On Service, you can compare the effects of market volatilities on Mega Manunggal and Shield On 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 Shield On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and Shield On.
Diversification Opportunities for Mega Manunggal and Shield On
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mega and Shield is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property and Shield On Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shield On Service 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 Shield On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shield On Service has no effect on the direction of Mega Manunggal i.e., Mega Manunggal and Shield On go up and down completely randomly.
Pair Corralation between Mega Manunggal and Shield On
Assuming the 90 days trading horizon Mega Manunggal Property is expected to generate 0.34 times more return on investment than Shield On. However, Mega Manunggal Property is 2.95 times less risky than Shield On. It trades about -0.22 of its potential returns per unit of risk. Shield On Service is currently generating about -0.37 per unit of risk. If you would invest 54,500 in Mega Manunggal Property on September 2, 2024 and sell it today you would lose (5,700) from holding Mega Manunggal Property or give up 10.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mega Manunggal Property vs. Shield On Service
Performance |
| Timeline |
| Mega Manunggal Property |
| Shield On Service |
Mega Manunggal and Shield On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mega Manunggal and Shield On
The main advantage of trading using opposite Mega Manunggal and Shield On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Manunggal position performs unexpectedly, Shield On 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 Shield On will offset losses from the drop in Shield On'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 |
| Shield On vs. PT Surya Pertiwi | Shield On vs. Satria Mega Kencana | Shield On vs. Multifiling Mitra Indonesia | Shield On vs. Royal Prima 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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