Correlation Between Visi Media and Protech Mitra
Can any of the company-specific risk be diversified away by investing in both Visi Media and Protech Mitra 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 Protech Mitra 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 Protech Mitra Perkasa, you can compare the effects of market volatilities on Visi Media and Protech Mitra 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 Protech Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Protech Mitra.
Diversification Opportunities for Visi Media and Protech Mitra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visi and Protech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and Protech Mitra Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protech Mitra Perkasa 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 Protech Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protech Mitra Perkasa has no effect on the direction of Visi Media i.e., Visi Media and Protech Mitra go up and down completely randomly.
Pair Corralation between Visi Media and Protech Mitra
Assuming the 90 days trading horizon Visi Media Asia is expected to under-perform the Protech Mitra. But the stock apears to be less risky and, when comparing its historical volatility, Visi Media Asia is 2.01 times less risky than Protech Mitra. The stock trades about -0.15 of its potential returns per unit of risk. The Protech Mitra Perkasa is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 79,000 in Protech Mitra Perkasa on September 2, 2024 and sell it today you would lose (65,400) from holding Protech Mitra Perkasa or give up 82.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Visi Media Asia vs. Protech Mitra Perkasa
Performance |
| Timeline |
| Visi Media Asia |
| Protech Mitra Perkasa |
Visi Media and Protech Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visi Media and Protech Mitra
The main advantage of trading using opposite Visi Media and Protech Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visi Media position performs unexpectedly, Protech Mitra 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 Protech Mitra will offset losses from the drop in Protech Mitra'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 |
| Protech Mitra vs. Matahari Department Store | Protech Mitra vs. Multi Medika Internasional | Protech Mitra vs. Visi Media Asia | Protech Mitra vs. Bayan Resources 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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