Correlation Between PT Sarana and Mnc Land
Can any of the company-specific risk be diversified away by investing in both PT Sarana 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 PT Sarana and Mnc Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and Mnc Land Tbk, you can compare the effects of market volatilities on PT Sarana 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 PT Sarana with a short position of Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and Mnc Land.
Diversification Opportunities for PT Sarana and Mnc Land
Modest diversification
The 3 months correlation between TOWR and Mnc is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara 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 PT Sarana 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 Sarana Menara 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 PT Sarana i.e., PT Sarana and Mnc Land go up and down completely randomly.
Pair Corralation between PT Sarana and Mnc Land
Assuming the 90 days trading horizon PT Sarana Menara is expected to under-perform the Mnc Land. But the stock apears to be less risky and, when comparing its historical volatility, PT Sarana Menara is 1.89 times less risky than Mnc Land. The stock trades about -0.04 of its potential returns per unit of risk. The Mnc Land Tbk is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,700 in Mnc Land Tbk on August 31, 2024 and sell it today you would earn a total of 8,600 from holding Mnc Land Tbk or generate 128.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
PT Sarana Menara vs. Mnc Land Tbk
Performance |
| Timeline |
| PT Sarana Menara |
| Mnc Land Tbk |
PT Sarana and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and Mnc Land
The main advantage of trading using opposite PT Sarana and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana 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.| PT Sarana vs. Indosat Tbk | PT Sarana vs. XL Axiata Tbk | PT Sarana vs. Energi Mega Persada | PT Sarana vs. Bakrie Brothers 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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