Correlation Between Surya Citra and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Surya Citra 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 Surya Citra and Mnc Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Citra Media and Mnc Land Tbk, you can compare the effects of market volatilities on Surya Citra 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 Surya Citra with a short position of Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and Mnc Land.
Diversification Opportunities for Surya Citra and Mnc Land
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surya and Mnc is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media 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 Surya Citra 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 Surya Citra Media 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 Surya Citra i.e., Surya Citra and Mnc Land go up and down completely randomly.
Pair Corralation between Surya Citra and Mnc Land
Assuming the 90 days trading horizon Surya Citra Media is expected to generate 0.61 times more return on investment than Mnc Land. However, Surya Citra Media is 1.63 times less risky than Mnc Land. It trades about 0.11 of its potential returns per unit of risk. Mnc Land Tbk is currently generating about -0.05 per unit of risk. If you would invest 12,484 in Surya Citra Media on August 31, 2024 and sell it today you would earn a total of 716.00 from holding Surya Citra Media or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. Mnc Land Tbk
Performance |
| Timeline |
| Surya Citra Media |
| Mnc Land Tbk |
Surya Citra and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and Mnc Land
The main advantage of trading using opposite Surya Citra and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra 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.| Surya Citra vs. Media Nusantara Citra | Surya Citra vs. Matahari Department Store | Surya Citra vs. Akr Corporindo Tbk | Surya Citra vs. XL Axiata Tbk |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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