Correlation Between MNC Studios and Surya Esa

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

By analyzing existing cross correlation between MNC Studios International and Surya Esa Perkasa, you can compare the effects of market volatilities on MNC Studios and Surya Esa 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 Studios with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNC Studios and Surya Esa.

Diversification Opportunities for MNC Studios and Surya Esa

0.91

Correlation Coefficient

MNC Studios  Surya Esa

Almost no diversification

The 3 months correlation between MNC and Surya is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding MNC Studios International and Surya Esa Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Esa Perkasa and MNC Studios 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 Studios International are associated (or correlated) with Surya Esa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Esa Perkasa has no effect on the direction of MNC Studios i.e., MNC Studios and Surya Esa go up and down completely randomly.

Pair Corralation between MNC Studios and Surya Esa

Assuming the 90 days trading horizon MNC Studios International is expected to under-perform the Surya Esa. In addition to that, MNC Studios is 1.3 times more volatile than Surya Esa Perkasa. It trades about -0.13 of its total potential returns per unit of risk. Surya Esa Perkasa is currently generating about 0.08 per unit of volatility. If you would invest  81,500  in Surya Esa Perkasa on October 8, 2024 and sell it today you would earn a total of  2,500  from holding Surya Esa Perkasa or generate 3.07% return on investment over 90 days.

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

MNC Studios International  vs.  Surya Esa Perkasa

MNC Studios International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MNC Studios International 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 February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Surya Esa Perkasa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surya Esa Perkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with MNC Studios and Surya Esa

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

The idea behind MNC Studios International and Surya Esa Perkasa 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.