Correlation Between Mega Manunggal and Pollux Properti

Can any of the company-specific risk be diversified away by investing in both Mega Manunggal and Pollux Properti 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 Mega Manunggal and Pollux Properti into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mega Manunggal Property and Pollux Properti Indonesia, you can compare the effects of market volatilities on Mega Manunggal and Pollux Properti 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 Mega Manunggal with a short position of Pollux Properti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and Pollux Properti.

Diversification Opportunities for Mega Manunggal and Pollux Properti

0.0

Correlation Coefficient

Mega Manunggal  Pollux Properti

Pay attention - limited upside

The 3 months correlation between Mega and Pollux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property and Pollux Properti Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Properti Indonesia and Mega Manunggal 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 Mega Manunggal Property are associated (or correlated) with Pollux Properti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Properti Indonesia has no effect on the direction of Mega Manunggal i.e., Mega Manunggal and Pollux Properti go up and down completely randomly.

Pair Corralation between Mega Manunggal and Pollux Properti

If you would invest  48,400  in Mega Manunggal Property on October 12, 2024 and sell it today you would earn a total of  400.00  from holding Mega Manunggal Property or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mega Manunggal Property  vs.  Pollux Properti Indonesia

Mega Manunggal Property

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mega Manunggal Property are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Mega Manunggal is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pollux Properti Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Mega Manunggal and Pollux Properti

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

The idea behind Mega Manunggal Property and Pollux Properti Indonesia 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.