Correlation Between MD Pictures and Graha Layar
Can any of the company-specific risk be diversified away by investing in both MD Pictures and Graha Layar 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 MD Pictures and Graha Layar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MD Pictures Tbk and Graha Layar Prima, you can compare the effects of market volatilities on MD Pictures and Graha Layar 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 MD Pictures with a short position of Graha Layar. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Graha Layar.
Diversification Opportunities for MD Pictures and Graha Layar
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FILM and Graha is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk and Graha Layar Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Layar Prima and MD Pictures 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 MD Pictures Tbk are associated (or correlated) with Graha Layar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Layar Prima has no effect on the direction of MD Pictures i.e., MD Pictures and Graha Layar go up and down completely randomly.
Pair Corralation between MD Pictures and Graha Layar
Assuming the 90 days trading horizon MD Pictures Tbk is expected to under-perform the Graha Layar. In addition to that, MD Pictures is 2.94 times more volatile than Graha Layar Prima. It trades about -0.01 of its total potential returns per unit of risk. Graha Layar Prima is currently generating about 0.05 per unit of volatility. If you would invest 192,500 in Graha Layar Prima on September 14, 2024 and sell it today you would earn a total of 7,500 from holding Graha Layar Prima or generate 3.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MD Pictures Tbk vs. Graha Layar Prima
Performance |
Timeline |
MD Pictures Tbk |
Graha Layar Prima |
MD Pictures and Graha Layar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MD Pictures and Graha Layar
The main advantage of trading using opposite MD Pictures and Graha Layar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures position performs unexpectedly, Graha Layar 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 Graha Layar will offset losses from the drop in Graha Layar's long position.MD Pictures vs. MNC Studios International | MD Pictures vs. Elang Mahkota Teknologi | MD Pictures vs. Medikaloka Hermina PT | MD Pictures vs. Surya Esa Perkasa |
Graha Layar vs. Electronic City Indonesia | Graha Layar vs. Bayu Buana Tbk | Graha Layar vs. Bintang Oto Global | Graha Layar vs. Garuda Metalindo 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |