Correlation Between Dunia Virtual and Media Nusantara
Can any of the company-specific risk be diversified away by investing in both Dunia Virtual and Media Nusantara 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 Dunia Virtual and Media Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunia Virtual Online and Media Nusantara Citra, you can compare the effects of market volatilities on Dunia Virtual and Media Nusantara 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 Dunia Virtual with a short position of Media Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunia Virtual and Media Nusantara.
Diversification Opportunities for Dunia Virtual and Media Nusantara
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunia and Media is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dunia Virtual Online and Media Nusantara Citra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Nusantara Citra and Dunia Virtual 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 Dunia Virtual Online are associated (or correlated) with Media Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Nusantara Citra has no effect on the direction of Dunia Virtual i.e., Dunia Virtual and Media Nusantara go up and down completely randomly.
Pair Corralation between Dunia Virtual and Media Nusantara
Assuming the 90 days trading horizon Dunia Virtual Online is expected to generate 3.71 times more return on investment than Media Nusantara. However, Dunia Virtual is 3.71 times more volatile than Media Nusantara Citra. It trades about 0.34 of its potential returns per unit of risk. Media Nusantara Citra is currently generating about -0.35 per unit of risk. If you would invest 20,400 in Dunia Virtual Online on December 3, 2024 and sell it today you would earn a total of 23,400 from holding Dunia Virtual Online or generate 114.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dunia Virtual Online vs. Media Nusantara Citra
Performance |
Timeline |
Dunia Virtual Online |
Media Nusantara Citra |
Dunia Virtual and Media Nusantara Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dunia Virtual and Media Nusantara
The main advantage of trading using opposite Dunia Virtual and Media Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunia Virtual position performs unexpectedly, Media Nusantara 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 Media Nusantara will offset losses from the drop in Media Nusantara's long position.Dunia Virtual vs. Alumindo Light Metal | Dunia Virtual vs. First Media Tbk | Dunia Virtual vs. Diamond Food Indonesia | Dunia Virtual vs. Merdeka Copper Gold |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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