Correlation Between Pudjiadi Prestige and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Pudjiadi Prestige and Mnc Land 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 Pudjiadi Prestige and Mnc Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pudjiadi Prestige Tbk and Mnc Land Tbk, you can compare the effects of market volatilities on Pudjiadi Prestige and Mnc Land 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 Pudjiadi Prestige with a short position of Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pudjiadi Prestige and Mnc Land.
Diversification Opportunities for Pudjiadi Prestige and Mnc Land
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pudjiadi and Mnc is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Prestige Tbk and Mnc Land Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Land Tbk and Pudjiadi Prestige 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 Pudjiadi Prestige Tbk are associated (or correlated) with Mnc Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Land Tbk has no effect on the direction of Pudjiadi Prestige i.e., Pudjiadi Prestige and Mnc Land go up and down completely randomly.
Pair Corralation between Pudjiadi Prestige and Mnc Land
Assuming the 90 days trading horizon Pudjiadi Prestige Tbk is expected to generate 1.14 times more return on investment than Mnc Land. However, Pudjiadi Prestige is 1.14 times more volatile than Mnc Land Tbk. It trades about 0.06 of its potential returns per unit of risk. Mnc Land Tbk is currently generating about -0.07 per unit of risk. If you would invest 24,400 in Pudjiadi Prestige Tbk on August 28, 2024 and sell it today you would earn a total of 3,600 from holding Pudjiadi Prestige Tbk or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pudjiadi Prestige Tbk vs. Mnc Land Tbk
Performance |
| Timeline |
| Pudjiadi Prestige Tbk |
| Mnc Land Tbk |
Pudjiadi Prestige and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pudjiadi Prestige and Mnc Land
The main advantage of trading using opposite Pudjiadi Prestige and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pudjiadi Prestige position performs unexpectedly, Mnc Land 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 Land will offset losses from the drop in Mnc Land's long position.| Pudjiadi Prestige vs. Ristia Bintang Mahkotasejati | Pudjiadi Prestige vs. Suryamas Dutamakmur Tbk | Pudjiadi Prestige vs. Pikko Land Development | Pudjiadi Prestige vs. Hotel Sahid Jaya |
| Mnc Land vs. Modernland Realty Ltd | Mnc Land vs. Jaya Real Property | Mnc Land vs. Lippo Cikarang Tbk | Mnc Land vs. Jakarta Int Hotels |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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