Correlation Between Media Nusantara and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both Media Nusantara and Akr Corporindo 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 Media Nusantara and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media Nusantara Citra and Akr Corporindo Tbk, you can compare the effects of market volatilities on Media Nusantara and Akr Corporindo 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 Media Nusantara with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Nusantara and Akr Corporindo.
Diversification Opportunities for Media Nusantara and Akr Corporindo
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Media and Akr is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Media Nusantara Citra and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and Media Nusantara 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 Media Nusantara Citra are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of Media Nusantara i.e., Media Nusantara and Akr Corporindo go up and down completely randomly.
Pair Corralation between Media Nusantara and Akr Corporindo
Assuming the 90 days trading horizon Media Nusantara Citra is expected to under-perform the Akr Corporindo. But the stock apears to be less risky and, when comparing its historical volatility, Media Nusantara Citra is 1.15 times less risky than Akr Corporindo. The stock trades about -0.21 of its potential returns per unit of risk. The Akr Corporindo Tbk is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 144,000 in Akr Corporindo Tbk on August 24, 2024 and sell it today you would lose (14,000) from holding Akr Corporindo Tbk or give up 9.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Media Nusantara Citra vs. Akr Corporindo Tbk
Performance |
| Timeline |
| Media Nusantara Citra |
| Akr Corporindo Tbk |
Media Nusantara and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Nusantara and Akr Corporindo
The main advantage of trading using opposite Media Nusantara and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Nusantara position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| Media Nusantara vs. Global Mediacom Tbk | Media Nusantara vs. Surya Citra Media | Media Nusantara vs. Akr Corporindo Tbk | Media Nusantara vs. Bumi Serpong Damai |
| Akr Corporindo vs. Samudera Indonesia Tbk | Akr Corporindo vs. Steady Safe TBK | Akr Corporindo vs. Rukun Raharja Tbk | Akr Corporindo vs. PT Temas Tbk |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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