Correlation Between Visi Media and Mahaka Media
Can any of the company-specific risk be diversified away by investing in both Visi Media and Mahaka Media 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 Visi Media and Mahaka Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visi Media Asia and Mahaka Media Tbk, you can compare the effects of market volatilities on Visi Media and Mahaka Media 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 Visi Media with a short position of Mahaka Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Mahaka Media.
Diversification Opportunities for Visi Media and Mahaka Media
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visi and Mahaka is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and Mahaka Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Media Tbk and Visi Media 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 Visi Media Asia are associated (or correlated) with Mahaka Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Media Tbk has no effect on the direction of Visi Media i.e., Visi Media and Mahaka Media go up and down completely randomly.
Pair Corralation between Visi Media and Mahaka Media
Assuming the 90 days trading horizon Visi Media Asia is expected to generate 1.28 times more return on investment than Mahaka Media. However, Visi Media is 1.28 times more volatile than Mahaka Media Tbk. It trades about 0.15 of its potential returns per unit of risk. Mahaka Media Tbk is currently generating about -0.12 per unit of risk. If you would invest 1,300 in Visi Media Asia on November 28, 2024 and sell it today you would earn a total of 200.00 from holding Visi Media Asia or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visi Media Asia vs. Mahaka Media Tbk
Performance |
| Timeline |
| Visi Media Asia |
| Mahaka Media Tbk |
Visi Media and Mahaka Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visi Media and Mahaka Media
The main advantage of trading using opposite Visi Media and Mahaka Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visi Media position performs unexpectedly, Mahaka Media 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 Mahaka Media will offset losses from the drop in Mahaka Media's long position.| Visi Media vs. Surya Semesta Internusa | Visi Media vs. Bumi Resources Minerals | Visi Media vs. Multipolar Tbk | Visi Media vs. Surya Citra Media |
| Mahaka Media vs. Akbar Indomakmur Stimec | Mahaka Media vs. Bayu Buana Tbk | Mahaka Media vs. Centratama Telekomunikasi Ind | Mahaka Media vs. Fortune Indonesia Tbk |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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