Correlation Between Global Sukses and M Cash
Can any of the company-specific risk be diversified away by investing in both Global Sukses and M Cash 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 Global Sukses and M Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Sukses Solusi and M Cash Integrasi, you can compare the effects of market volatilities on Global Sukses and M Cash 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 Global Sukses with a short position of M Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Sukses and M Cash.
Diversification Opportunities for Global Sukses and M Cash
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and MCAS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Global Sukses Solusi and M Cash Integrasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Cash Integrasi and Global Sukses 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 Global Sukses Solusi are associated (or correlated) with M Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Cash Integrasi has no effect on the direction of Global Sukses i.e., Global Sukses and M Cash go up and down completely randomly.
Pair Corralation between Global Sukses and M Cash
Assuming the 90 days trading horizon Global Sukses Solusi is expected to under-perform the M Cash. In addition to that, Global Sukses is 1.05 times more volatile than M Cash Integrasi. It trades about -0.18 of its total potential returns per unit of risk. M Cash Integrasi is currently generating about -0.18 per unit of volatility. If you would invest 129,500 in M Cash Integrasi on September 4, 2024 and sell it today you would lose (18,000) from holding M Cash Integrasi or give up 13.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Sukses Solusi vs. M Cash Integrasi
Performance |
| Timeline |
| Global Sukses Solusi |
| M Cash Integrasi |
Global Sukses and M Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Sukses and M Cash
The main advantage of trading using opposite Global Sukses and M Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Sukses position performs unexpectedly, M Cash 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 M Cash will offset losses from the drop in M Cash's long position.| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
| M Cash vs. NFC Indonesia PT | M Cash vs. Digital Mediatama Maxima | M Cash vs. Nusantara Voucher Distribution | M Cash vs. Kioson Komersial Indonesia |
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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