Correlation Between Dunia Virtual and Multi Medika
Can any of the company-specific risk be diversified away by investing in both Dunia Virtual and Multi Medika 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 Dunia Virtual and Multi Medika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunia Virtual Online and Multi Medika Internasional, you can compare the effects of market volatilities on Dunia Virtual and Multi Medika 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 Dunia Virtual with a short position of Multi Medika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunia Virtual and Multi Medika.
Diversification Opportunities for Dunia Virtual and Multi Medika
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunia and Multi is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dunia Virtual Online and Multi Medika Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Medika Interna and Dunia Virtual 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 Dunia Virtual Online are associated (or correlated) with Multi Medika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Medika Interna has no effect on the direction of Dunia Virtual i.e., Dunia Virtual and Multi Medika go up and down completely randomly.
Pair Corralation between Dunia Virtual and Multi Medika
Assuming the 90 days trading horizon Dunia Virtual Online is expected to generate 0.85 times more return on investment than Multi Medika. However, Dunia Virtual Online is 1.18 times less risky than Multi Medika. It trades about 0.03 of its potential returns per unit of risk. Multi Medika Internasional is currently generating about 0.02 per unit of risk. If you would invest 21,400 in Dunia Virtual Online on September 13, 2024 and sell it today you would earn a total of 400.00 from holding Dunia Virtual Online or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Dunia Virtual Online vs. Multi Medika Internasional
Performance |
| Timeline |
| Dunia Virtual Online |
| Multi Medika Interna |
Dunia Virtual and Multi Medika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunia Virtual and Multi Medika
The main advantage of trading using opposite Dunia Virtual and Multi Medika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunia Virtual position performs unexpectedly, Multi Medika 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 Multi Medika will offset losses from the drop in Multi Medika's long position.| Dunia Virtual vs. Bank Central Asia | Dunia Virtual vs. Bank Rakyat Indonesia | Dunia Virtual vs. Bayan Resources Tbk | Dunia Virtual vs. Bank Mandiri Persero |
| Multi Medika vs. Digital Mediatama Maxima | Multi Medika vs. United Tractors Tbk | Multi Medika vs. Integra Indocabinet Tbk | Multi Medika vs. PT MNC Energy |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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