Correlation Between Kawasan Industri and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Kawasan Industri and Mnc Land 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 Kawasan Industri and Mnc Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kawasan Industri Jababeka and Mnc Land Tbk, you can compare the effects of market volatilities on Kawasan Industri and Mnc Land 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 Kawasan Industri with a short position of Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kawasan Industri and Mnc Land.
Diversification Opportunities for Kawasan Industri and Mnc Land
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kawasan and Mnc is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kawasan Industri Jababeka and Mnc Land Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Land Tbk and Kawasan Industri 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 Kawasan Industri Jababeka are associated (or correlated) with Mnc Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Land Tbk has no effect on the direction of Kawasan Industri i.e., Kawasan Industri and Mnc Land go up and down completely randomly.
Pair Corralation between Kawasan Industri and Mnc Land
Assuming the 90 days trading horizon Kawasan Industri Jababeka is expected to generate 0.31 times more return on investment than Mnc Land. However, Kawasan Industri Jababeka is 3.19 times less risky than Mnc Land. It trades about -0.2 of its potential returns per unit of risk. Mnc Land Tbk is currently generating about -0.09 per unit of risk. If you would invest 19,600 in Kawasan Industri Jababeka on December 2, 2024 and sell it today you would lose (2,700) from holding Kawasan Industri Jababeka or give up 13.78% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kawasan Industri Jababeka vs. Mnc Land Tbk
Performance |
Timeline |
Kawasan Industri Jababeka |
Mnc Land Tbk |
Kawasan Industri and Mnc Land Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kawasan Industri and Mnc Land
The main advantage of trading using opposite Kawasan Industri and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kawasan Industri position performs unexpectedly, Mnc Land 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 Mnc Land will offset losses from the drop in Mnc Land's long position.Kawasan Industri vs. Bakrieland Development Tbk | Kawasan Industri vs. Ciputra Development Tbk | Kawasan Industri vs. Sentul City Tbk | Kawasan Industri vs. Solusi Bangun Indonesia |
Mnc Land vs. Modernland Realty Ltd | Mnc Land vs. Jaya Real Property | Mnc Land vs. Lippo Cikarang Tbk | Mnc Land vs. Jakarta Int Hotels |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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