Correlation Between MNC Studios and Royal Prima
Can any of the company-specific risk be diversified away by investing in both MNC Studios and Royal Prima 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 Royal Prima 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 Royal Prima PT, you can compare the effects of market volatilities on MNC Studios and Royal Prima 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 Royal Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNC Studios and Royal Prima.
Diversification Opportunities for MNC Studios and Royal Prima
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MNC and Royal is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MNC Studios International and Royal Prima PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Prima PT 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 Royal Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Prima PT has no effect on the direction of MNC Studios i.e., MNC Studios and Royal Prima go up and down completely randomly.
Pair Corralation between MNC Studios and Royal Prima
Assuming the 90 days trading horizon MNC Studios International is expected to generate 1.18 times more return on investment than Royal Prima. However, MNC Studios is 1.18 times more volatile than Royal Prima PT. It trades about 0.07 of its potential returns per unit of risk. Royal Prima PT is currently generating about -0.03 per unit of risk. If you would invest 60,000 in MNC Studios International on August 24, 2024 and sell it today you would earn a total of 40,000 from holding MNC Studios International or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNC Studios International vs. Royal Prima PT
Performance |
| Timeline |
| MNC Studios International |
| Royal Prima PT |
MNC Studios and Royal Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNC Studios and Royal Prima
The main advantage of trading using opposite MNC Studios and Royal Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNC Studios position performs unexpectedly, Royal Prima 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 Royal Prima will offset losses from the drop in Royal Prima'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 |
| Royal Prima vs. Mitra Keluarga Karyasehat | Royal Prima vs. Matahari Department Store | Royal Prima vs. Surya Citra Media | Royal Prima vs. Sawit Sumbermas Sarana |
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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