Correlation Between Mnc Land and Surya Citra
Can any of the company-specific risk be diversified away by investing in both Mnc Land and Surya Citra 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 Surya Citra 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 Surya Citra Media, you can compare the effects of market volatilities on Mnc Land and Surya Citra 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 Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnc Land and Surya Citra.
Diversification Opportunities for Mnc Land and Surya Citra
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mnc and Surya is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mnc Land Tbk and Surya Citra Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Citra Media 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 Surya Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Citra Media has no effect on the direction of Mnc Land i.e., Mnc Land and Surya Citra go up and down completely randomly.
Pair Corralation between Mnc Land and Surya Citra
Assuming the 90 days trading horizon Mnc Land Tbk is expected to under-perform the Surya Citra. But the stock apears to be less risky and, when comparing its historical volatility, Mnc Land Tbk is 1.2 times less risky than Surya Citra. The stock trades about -0.08 of its potential returns per unit of risk. The Surya Citra Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 13,900 in Surya Citra Media on December 4, 2024 and sell it today you would earn a total of 6,500 from holding Surya Citra Media or generate 46.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mnc Land Tbk vs. Surya Citra Media
Performance |
Timeline |
Mnc Land Tbk |
Surya Citra Media |
Mnc Land and Surya Citra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mnc Land and Surya Citra
The main advantage of trading using opposite Mnc Land and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnc Land position performs unexpectedly, Surya Citra 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 Surya Citra will offset losses from the drop in Surya Citra's long position.Mnc Land vs. Modernland Realty Ltd | Mnc Land vs. Jaya Real Property | Mnc Land vs. Lippo Cikarang Tbk | Mnc Land vs. Jakarta Int Hotels |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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