Correlation Between Mega Manunggal and PT Winner
Can any of the company-specific risk be diversified away by investing in both Mega Manunggal and PT Winner 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 PT Winner 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 PT Winner Nusantara, you can compare the effects of market volatilities on Mega Manunggal and PT Winner 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 PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and PT Winner.
Diversification Opportunities for Mega Manunggal and PT Winner
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mega and WINR is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 PT Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Mega Manunggal i.e., Mega Manunggal and PT Winner go up and down completely randomly.
Pair Corralation between Mega Manunggal and PT Winner
Assuming the 90 days trading horizon Mega Manunggal Property is expected to generate 0.65 times more return on investment than PT Winner. However, Mega Manunggal Property is 1.54 times less risky than PT Winner. It trades about 0.03 of its potential returns per unit of risk. PT Winner Nusantara is currently generating about -0.05 per unit of risk. If you would invest 40,800 in Mega Manunggal Property on August 30, 2024 and sell it today you would earn a total of 8,400 from holding Mega Manunggal Property or generate 20.59% 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. PT Winner Nusantara
Performance |
| Timeline |
| Mega Manunggal Property |
| PT Winner Nusantara |
Mega Manunggal and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mega Manunggal and PT Winner
The main advantage of trading using opposite Mega Manunggal and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Manunggal position performs unexpectedly, PT Winner 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 PT Winner will offset losses from the drop in PT Winner'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 |
| PT Winner vs. Pollux Properti Indonesia | PT Winner vs. Maha Properti Indonesia | PT Winner vs. Mega Manunggal Property | PT Winner 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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