Correlation Between MNC Studios and Satria Mega
Can any of the company-specific risk be diversified away by investing in both MNC Studios and Satria Mega 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 Satria Mega 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 Satria Mega Kencana, you can compare the effects of market volatilities on MNC Studios and Satria Mega 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 Satria Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNC Studios and Satria Mega.
Diversification Opportunities for MNC Studios and Satria Mega
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MNC and Satria is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding MNC Studios International and Satria Mega Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satria Mega Kencana 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 Satria Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satria Mega Kencana has no effect on the direction of MNC Studios i.e., MNC Studios and Satria Mega go up and down completely randomly.
Pair Corralation between MNC Studios and Satria Mega
Assuming the 90 days trading horizon MNC Studios International is expected to under-perform the Satria Mega. But the stock apears to be less risky and, when comparing its historical volatility, MNC Studios International is 1.14 times less risky than Satria Mega. The stock trades about -0.17 of its potential returns per unit of risk. The Satria Mega Kencana is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 29,000 in Satria Mega Kencana on August 30, 2024 and sell it today you would earn a total of 2,200 from holding Satria Mega Kencana or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNC Studios International vs. Satria Mega Kencana
Performance |
| Timeline |
| MNC Studios International |
| Satria Mega Kencana |
MNC Studios and Satria Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNC Studios and Satria Mega
The main advantage of trading using opposite MNC Studios and Satria Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNC Studios position performs unexpectedly, Satria Mega 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 Satria Mega will offset losses from the drop in Satria Mega's long position.| MNC Studios vs. Bank Artos Indonesia | MNC Studios vs. PT Bukalapak | MNC Studios vs. Sumber Alfaria Trijaya | MNC Studios vs. Merdeka Copper Gold |
| Satria Mega vs. Shield On Service | Satria Mega vs. MNC Studios International | Satria Mega vs. Royal Prima PT | Satria Mega vs. Sanurhasta Mitra 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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