Correlation Between MNC Studios and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both MNC Studios and Bintang Oto 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 MNC Studios and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MNC Studios International and Bintang Oto Global, you can compare the effects of market volatilities on MNC Studios and Bintang Oto 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 MNC Studios with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNC Studios and Bintang Oto.
Diversification Opportunities for MNC Studios and Bintang Oto
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MNC and Bintang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding MNC Studios International and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and MNC Studios 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 MNC Studios International are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of MNC Studios i.e., MNC Studios and Bintang Oto go up and down completely randomly.
Pair Corralation between MNC Studios and Bintang Oto
Assuming the 90 days trading horizon MNC Studios International is expected to generate 24.64 times more return on investment than Bintang Oto. However, MNC Studios is 24.64 times more volatile than Bintang Oto Global. It trades about 0.05 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.09 per unit of risk. If you would invest 80,000 in MNC Studios International on September 1, 2024 and sell it today you would earn a total of 17,500 from holding MNC Studios International or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNC Studios International vs. Bintang Oto Global
Performance |
| Timeline |
| MNC Studios International |
| Bintang Oto Global |
MNC Studios and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNC Studios and Bintang Oto
The main advantage of trading using opposite MNC Studios and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNC Studios position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| MNC Studios vs. Mnc Land Tbk | MNC Studios vs. MNC Vision Networks | MNC Studios vs. MD Pictures Tbk | MNC Studios vs. Link Net Tbk |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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