Correlation Between Mnc Land and Karya Bersama

Can any of the company-specific risk be diversified away by investing in both Mnc Land and Karya Bersama 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 Mnc Land and Karya Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mnc Land Tbk and Karya Bersama Anugerah, you can compare the effects of market volatilities on Mnc Land and Karya Bersama 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 Mnc Land with a short position of Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Land and Karya Bersama.

Diversification Opportunities for Mnc Land and Karya Bersama

-0.55

Correlation Coefficient

Mnc Land  Karya Bersama

Excellent diversification

The 3 months correlation between Mnc and Karya is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Land Tbk and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah and Mnc Land 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 Mnc Land Tbk are associated (or correlated) with Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Mnc Land i.e., Mnc Land and Karya Bersama go up and down completely randomly.

Pair Corralation between Mnc Land and Karya Bersama

Assuming the 90 days trading horizon Mnc Land Tbk is expected to under-perform the Karya Bersama. But the stock apears to be less risky and, when comparing its historical volatility, Mnc Land Tbk is 1.22 times less risky than Karya Bersama. The stock trades about -0.08 of its potential returns per unit of risk. The Karya Bersama Anugerah is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  2,100  in Karya Bersama Anugerah on December 29, 2024 and sell it today you would earn a total of  1,600  from holding Karya Bersama Anugerah or generate 76.19% return on investment over 90 days.

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

Mnc Land Tbk  vs.  Karya Bersama Anugerah

Mnc Land Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mnc Land Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Karya Bersama Anugerah

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Karya Bersama Anugerah are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Karya Bersama disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mnc Land and Karya Bersama

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

The idea behind Mnc Land Tbk and Karya Bersama Anugerah 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.