Correlation Between Citra Marga and Multipolar Tbk
Can any of the company-specific risk be diversified away by investing in both Citra Marga and Multipolar Tbk 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 Citra Marga and Multipolar Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Marga Nusaphala and Multipolar Tbk, you can compare the effects of market volatilities on Citra Marga and Multipolar Tbk 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 Citra Marga with a short position of Multipolar Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Marga and Multipolar Tbk.
Diversification Opportunities for Citra Marga and Multipolar Tbk
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citra and Multipolar is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citra Marga Nusaphala and Multipolar Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multipolar Tbk and Citra Marga 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 Citra Marga Nusaphala are associated (or correlated) with Multipolar Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multipolar Tbk has no effect on the direction of Citra Marga i.e., Citra Marga and Multipolar Tbk go up and down completely randomly.
Pair Corralation between Citra Marga and Multipolar Tbk
Assuming the 90 days trading horizon Citra Marga Nusaphala is expected to generate 0.06 times more return on investment than Multipolar Tbk. However, Citra Marga Nusaphala is 16.04 times less risky than Multipolar Tbk. It trades about -0.1 of its potential returns per unit of risk. Multipolar Tbk is currently generating about -0.27 per unit of risk. If you would invest 143,500 in Citra Marga Nusaphala on September 1, 2024 and sell it today you would lose (2,000) from holding Citra Marga Nusaphala or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citra Marga Nusaphala vs. Multipolar Tbk
Performance |
| Timeline |
| Citra Marga Nusaphala |
| Multipolar Tbk |
Citra Marga and Multipolar Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Marga and Multipolar Tbk
The main advantage of trading using opposite Citra Marga and Multipolar Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Marga position performs unexpectedly, Multipolar Tbk 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 Multipolar Tbk will offset losses from the drop in Multipolar Tbk's long position.| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama Tbk |
| Multipolar Tbk vs. Matahari Putra Prima | Multipolar Tbk vs. Mnc Investama Tbk | Multipolar Tbk vs. Kawasan Industri Jababeka | Multipolar Tbk vs. Lippo Karawaci Tbk |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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