Correlation Between Media Nusantara and Indointernet Tbk
Can any of the company-specific risk be diversified away by investing in both Media Nusantara and Indointernet Tbk 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 Indointernet Tbk 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 Indointernet Tbk PT, you can compare the effects of market volatilities on Media Nusantara and Indointernet Tbk 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 Indointernet Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Nusantara and Indointernet Tbk.
Diversification Opportunities for Media Nusantara and Indointernet Tbk
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Media and Indointernet is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Media Nusantara Citra and Indointernet Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indointernet 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 Indointernet Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indointernet Tbk has no effect on the direction of Media Nusantara i.e., Media Nusantara and Indointernet Tbk go up and down completely randomly.
Pair Corralation between Media Nusantara and Indointernet Tbk
Assuming the 90 days trading horizon Media Nusantara Citra is expected to under-perform the Indointernet Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Media Nusantara Citra is 1.03 times less risky than Indointernet Tbk. The stock trades about -0.5 of its potential returns per unit of risk. The Indointernet Tbk PT is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 386,000 in Indointernet Tbk PT on November 18, 2024 and sell it today you would lose (23,000) from holding Indointernet Tbk PT or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media Nusantara Citra vs. Indointernet Tbk PT
Performance |
| Timeline |
| Media Nusantara Citra |
| Indointernet Tbk |
Media Nusantara and Indointernet Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Nusantara and Indointernet Tbk
The main advantage of trading using opposite Media Nusantara and Indointernet Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Nusantara position performs unexpectedly, Indointernet Tbk 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 Indointernet Tbk will offset losses from the drop in Indointernet Tbk's long position.| Media Nusantara vs. Lenox Pasifik Investama | Media Nusantara vs. Multipolar Tbk | Media Nusantara vs. Lautan Luas Tbk | Media Nusantara vs. Metrodata Electronics Tbk |
| Indointernet Tbk vs. DCI Indonesia Tbk | Indointernet Tbk vs. Digital Mediatama Maxima | Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Bank Net Indonesia |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |