Correlation Between Clipan Finance and Multifiling Mitra
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Multifiling Mitra 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 Clipan Finance and Multifiling Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Multifiling Mitra Indonesia, you can compare the effects of market volatilities on Clipan Finance and Multifiling Mitra 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 Clipan Finance with a short position of Multifiling Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Multifiling Mitra.
Diversification Opportunities for Clipan Finance and Multifiling Mitra
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clipan and Multifiling is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Multifiling Mitra Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multifiling Mitra and Clipan Finance 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 Clipan Finance Indonesia are associated (or correlated) with Multifiling Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multifiling Mitra has no effect on the direction of Clipan Finance i.e., Clipan Finance and Multifiling Mitra go up and down completely randomly.
Pair Corralation between Clipan Finance and Multifiling Mitra
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to under-perform the Multifiling Mitra. But the stock apears to be less risky and, when comparing its historical volatility, Clipan Finance Indonesia is 1.65 times less risky than Multifiling Mitra. The stock trades about -0.69 of its potential returns per unit of risk. The Multifiling Mitra Indonesia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 120,000 in Multifiling Mitra Indonesia on August 30, 2024 and sell it today you would earn a total of 5,000 from holding Multifiling Mitra Indonesia or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Multifiling Mitra Indonesia
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Multifiling Mitra |
Clipan Finance and Multifiling Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Multifiling Mitra
The main advantage of trading using opposite Clipan Finance and Multifiling Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Multifiling Mitra 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 Multifiling Mitra will offset losses from the drop in Multifiling Mitra's long position.| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial Tbk |
| Multifiling Mitra vs. Midi Utama Indonesia | Multifiling Mitra vs. Jasuindo Tiga Perkasa | Multifiling Mitra vs. Multi Indocitra Tbk | Multifiling Mitra vs. Kokoh Inti Arebama |
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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