Correlation Between PT Multitrend and HK Metals
Can any of the company-specific risk be diversified away by investing in both PT Multitrend and HK Metals 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 PT Multitrend and HK Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Multitrend Indo and HK Metals Utama, you can compare the effects of market volatilities on PT Multitrend and HK Metals 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 PT Multitrend with a short position of HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multitrend and HK Metals.
Diversification Opportunities for PT Multitrend and HK Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BABY and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Multitrend Indo and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama and PT Multitrend 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 PT Multitrend Indo are associated (or correlated) with HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of PT Multitrend i.e., PT Multitrend and HK Metals go up and down completely randomly.
Pair Corralation between PT Multitrend and HK Metals
If you would invest 21,400 in PT Multitrend Indo on August 26, 2024 and sell it today you would earn a total of 8,800 from holding PT Multitrend Indo or generate 41.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.15% |
| Values | Daily Returns |
PT Multitrend Indo vs. HK Metals Utama
Performance |
| Timeline |
| PT Multitrend Indo |
| HK Metals Utama |
PT Multitrend and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Multitrend and HK Metals
The main advantage of trading using opposite PT Multitrend and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multitrend position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' long position.| PT Multitrend vs. HK Metals Utama | PT Multitrend vs. Alumindo Light Metal | PT Multitrend vs. Garudafood Putra Putri | PT Multitrend vs. Fast Food Indonesia |
| HK Metals vs. Bk Harda Internasional | HK Metals vs. Bank Net Indonesia | HK Metals vs. Bank Yudha Bhakti | HK Metals vs. Medikaloka Hermina PT |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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