Correlation Between PT MNC and Yelooo Integra

Can any of the company-specific risk be diversified away by investing in both PT MNC and Yelooo Integra 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 MNC and Yelooo Integra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT MNC Energy and Yelooo Integra Datanet, you can compare the effects of market volatilities on PT MNC and Yelooo Integra 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 MNC with a short position of Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT MNC and Yelooo Integra.

Diversification Opportunities for PT MNC and Yelooo Integra

0.27

Correlation Coefficient

PT MNC  Yelooo Integra

Modest diversification

The 3 months correlation between IATA and Yelooo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PT MNC Energy and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet and PT MNC 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 MNC Energy are associated (or correlated) with Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of PT MNC i.e., PT MNC and Yelooo Integra go up and down completely randomly.

Pair Corralation between PT MNC and Yelooo Integra

Assuming the 90 days trading horizon PT MNC Energy is expected to under-perform the Yelooo Integra. But the stock apears to be less risky and, when comparing its historical volatility, PT MNC Energy is 2.32 times less risky than Yelooo Integra. The stock trades about 0.0 of its potential returns per unit of risk. The Yelooo Integra Datanet is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,600  in Yelooo Integra Datanet on December 29, 2024 and sell it today you would earn a total of  600.00  from holding Yelooo Integra Datanet or generate 37.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PT MNC Energy  vs.  Yelooo Integra Datanet

PT MNC Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT MNC Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, PT MNC is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Yelooo Integra Datanet

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yelooo Integra Datanet are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Yelooo Integra disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT MNC and Yelooo Integra

The main advantage of trading using opposite PT MNC and Yelooo Integra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT MNC position performs unexpectedly, Yelooo Integra 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 Yelooo Integra will offset losses from the drop in Yelooo Integra's long position.

The idea behind PT MNC Energy and Yelooo Integra Datanet pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.