Correlation Between Tower Bersama and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Tower Bersama 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 Tower Bersama and Mnc Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Bersama Infrastructure and Mnc Land Tbk, you can compare the effects of market volatilities on Tower Bersama 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 Tower Bersama with a short position of Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Bersama and Mnc Land.
Diversification Opportunities for Tower Bersama and Mnc Land
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tower and Mnc is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tower Bersama Infrastructure 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 Tower Bersama 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 Tower Bersama Infrastructure 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 Tower Bersama i.e., Tower Bersama and Mnc Land go up and down completely randomly.
Pair Corralation between Tower Bersama and Mnc Land
Assuming the 90 days trading horizon Tower Bersama Infrastructure is expected to generate 0.3 times more return on investment than Mnc Land. However, Tower Bersama Infrastructure is 3.33 times less risky than Mnc Land. It trades about 0.13 of its potential returns per unit of risk. Mnc Land Tbk is currently generating about -0.01 per unit of risk. If you would invest 188,000 in Tower Bersama Infrastructure on August 28, 2024 and sell it today you would earn a total of 7,000 from holding Tower Bersama Infrastructure or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower Bersama Infrastructure vs. Mnc Land Tbk
Performance |
| Timeline |
| Tower Bersama Infras |
| Mnc Land Tbk |
Tower Bersama and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower Bersama and Mnc Land
The main advantage of trading using opposite Tower Bersama and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Bersama 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.| Tower Bersama vs. Mnc Land Tbk | Tower Bersama vs. MNC Vision Networks | Tower Bersama vs. Medikaloka Hermina PT |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |