Correlation Between Media Nusantara and Personel Alih
Can any of the company-specific risk be diversified away by investing in both Media Nusantara and Personel Alih 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 Personel Alih 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 Personel Alih Daya, you can compare the effects of market volatilities on Media Nusantara and Personel Alih 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 Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Nusantara and Personel Alih.
Diversification Opportunities for Media Nusantara and Personel Alih
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Media and Personel is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Media Nusantara Citra and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya 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 Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of Media Nusantara i.e., Media Nusantara and Personel Alih go up and down completely randomly.
Pair Corralation between Media Nusantara and Personel Alih
Assuming the 90 days trading horizon Media Nusantara Citra is expected to generate 0.36 times more return on investment than Personel Alih. However, Media Nusantara Citra is 2.75 times less risky than Personel Alih. It trades about -0.1 of its potential returns per unit of risk. Personel Alih Daya is currently generating about -0.04 per unit of risk. If you would invest 30,600 in Media Nusantara Citra on September 5, 2024 and sell it today you would lose (1,400) from holding Media Nusantara Citra or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media Nusantara Citra vs. Personel Alih Daya
Performance |
| Timeline |
| Media Nusantara Citra |
| Personel Alih Daya |
Media Nusantara and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Nusantara and Personel Alih
The main advantage of trading using opposite Media Nusantara and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Nusantara position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih's long position.| Media Nusantara vs. Energi Mega Persada | Media Nusantara vs. Mitra Pinasthika Mustika | Media Nusantara vs. Jakarta Int Hotels | Media Nusantara vs. Indosat Tbk |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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