Correlation Between Madusari Murni and MNC Studios
Can any of the company-specific risk be diversified away by investing in both Madusari Murni and MNC Studios 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 Madusari Murni and MNC Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Madusari Murni Indah and MNC Studios International, you can compare the effects of market volatilities on Madusari Murni and MNC Studios 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 Madusari Murni with a short position of MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madusari Murni and MNC Studios.
Diversification Opportunities for Madusari Murni and MNC Studios
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Madusari and MNC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Madusari Murni Indah and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International and Madusari Murni 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 Madusari Murni Indah are associated (or correlated) with MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of Madusari Murni i.e., Madusari Murni and MNC Studios go up and down completely randomly.
Pair Corralation between Madusari Murni and MNC Studios
Assuming the 90 days trading horizon Madusari Murni Indah is expected to generate 0.52 times more return on investment than MNC Studios. However, Madusari Murni Indah is 1.91 times less risky than MNC Studios. It trades about -0.15 of its potential returns per unit of risk. MNC Studios International is currently generating about -0.32 per unit of risk. If you would invest 21,200 in Madusari Murni Indah on November 3, 2024 and sell it today you would lose (800.00) from holding Madusari Murni Indah or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Madusari Murni Indah vs. MNC Studios International
Performance |
| Timeline |
| Madusari Murni Indah |
| MNC Studios International |
Madusari Murni and MNC Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Madusari Murni and MNC Studios
The main advantage of trading using opposite Madusari Murni and MNC Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Madusari Murni position performs unexpectedly, MNC Studios 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 MNC Studios will offset losses from the drop in MNC Studios' long position.| Madusari Murni vs. Emdeki Utama Tbk | Madusari Murni vs. Kirana Megatara Tbk | Madusari Murni vs. Mahkota Group Tbk | Madusari Murni vs. Sriwahana |
| MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. MD Pictures Tbk | MNC Studios vs. Link Net 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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