Correlation Between Campina Ice and Multistrada Arah
Can any of the company-specific risk be diversified away by investing in both Campina Ice and Multistrada Arah 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 Campina Ice and Multistrada Arah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campina Ice Cream and Multistrada Arah Sarana, you can compare the effects of market volatilities on Campina Ice and Multistrada Arah 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 Campina Ice with a short position of Multistrada Arah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campina Ice and Multistrada Arah.
Diversification Opportunities for Campina Ice and Multistrada Arah
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Campina and Multistrada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Campina Ice Cream and Multistrada Arah Sarana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multistrada Arah Sarana and Campina Ice 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 Campina Ice Cream are associated (or correlated) with Multistrada Arah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multistrada Arah Sarana has no effect on the direction of Campina Ice i.e., Campina Ice and Multistrada Arah go up and down completely randomly.
Pair Corralation between Campina Ice and Multistrada Arah
If you would invest 620,000 in Multistrada Arah Sarana on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Multistrada Arah Sarana or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Campina Ice Cream vs. Multistrada Arah Sarana
Performance |
| Timeline |
| Campina Ice Cream |
| Multistrada Arah Sarana |
Campina Ice and Multistrada Arah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campina Ice and Multistrada Arah
The main advantage of trading using opposite Campina Ice and Multistrada Arah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campina Ice position performs unexpectedly, Multistrada Arah 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 Multistrada Arah will offset losses from the drop in Multistrada Arah's long position.| Campina Ice vs. Bank BRISyariah Tbk | Campina Ice vs. Mitra Pinasthika Mustika | Campina Ice vs. Jakarta Int Hotels | Campina Ice vs. Indosterling Technomedia Tbk |
| Multistrada Arah vs. Japfa Comfeed Indonesia | Multistrada Arah vs. Charoen Pokphand Indonesia | Multistrada Arah vs. Erajaya Swasembada Tbk | Multistrada Arah vs. Indofood Cbp Sukses |
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.
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