Correlation Between M Cash and Dyandra Media

Can any of the company-specific risk be diversified away by investing in both M Cash and Dyandra Media 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 M Cash and Dyandra Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between M Cash Integrasi and Dyandra Media International, you can compare the effects of market volatilities on M Cash and Dyandra Media 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 M Cash with a short position of Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Cash and Dyandra Media.

Diversification Opportunities for M Cash and Dyandra Media

-0.78

Correlation Coefficient

M Cash  Dyandra Media

Pay attention - limited upside

The 3 months correlation between MCAS and Dyandra is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding M Cash Integrasi and Dyandra Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyandra Media Intern and M Cash 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 M Cash Integrasi are associated (or correlated) with Dyandra Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyandra Media Intern has no effect on the direction of M Cash i.e., M Cash and Dyandra Media go up and down completely randomly.

Pair Corralation between M Cash and Dyandra Media

Assuming the 90 days trading horizon M Cash Integrasi is expected to under-perform the Dyandra Media. In addition to that, M Cash is 1.19 times more volatile than Dyandra Media International. It trades about -0.13 of its total potential returns per unit of risk. Dyandra Media International is currently generating about 0.03 per unit of volatility. If you would invest  7,300  in Dyandra Media International on February 6, 2024 and sell it today you would earn a total of  1,500  from holding Dyandra Media International or generate 20.55% return on investment over 90 days.

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

M Cash Integrasi  vs.  Dyandra Media International

M Cash Integrasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days M Cash Integrasi 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 basic indicators remain quite persistent which may send shares a bit higher in June 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Dyandra Media Intern

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dyandra Media International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Dyandra Media disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with M Cash and Dyandra Media

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

The idea behind M Cash Integrasi and Dyandra Media International 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.