Correlation Between PT Soho and Mnc Investama
Can any of the company-specific risk be diversified away by investing in both PT Soho and Mnc Investama 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 PT Soho and Mnc Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Soho Global and Mnc Investama Tbk, you can compare the effects of market volatilities on PT Soho and Mnc Investama 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 PT Soho with a short position of Mnc Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Soho and Mnc Investama.
Diversification Opportunities for PT Soho and Mnc Investama
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOHO and Mnc is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding PT Soho Global and Mnc Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Investama Tbk and PT Soho 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 PT Soho Global are associated (or correlated) with Mnc Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Investama Tbk has no effect on the direction of PT Soho i.e., PT Soho and Mnc Investama go up and down completely randomly.
Pair Corralation between PT Soho and Mnc Investama
Assuming the 90 days trading horizon PT Soho Global is expected to generate 0.28 times more return on investment than Mnc Investama. However, PT Soho Global is 3.57 times less risky than Mnc Investama. It trades about 0.0 of its potential returns per unit of risk. Mnc Investama Tbk is currently generating about -0.18 per unit of risk. If you would invest 69,000 in PT Soho Global on August 29, 2024 and sell it today you would earn a total of 0.00 from holding PT Soho Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Soho Global vs. Mnc Investama Tbk
Performance |
| Timeline |
| PT Soho Global |
| Mnc Investama Tbk |
PT Soho and Mnc Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Soho and Mnc Investama
The main advantage of trading using opposite PT Soho and Mnc Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Soho position performs unexpectedly, Mnc Investama 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 Investama will offset losses from the drop in Mnc Investama's long position.| PT Soho vs. Kimia Farma Persero | PT Soho vs. Indofarma Tbk | PT Soho vs. Bank BRISyariah Tbk | PT Soho vs. Bank Rakyat Indonesia |
| Mnc Investama vs. Mnc Land Tbk | Mnc Investama vs. MNC Vision Networks | Mnc Investama vs. Medikaloka Hermina 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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