Correlation Between Delta Djakarta and Multi Bintang
Can any of the company-specific risk be diversified away by investing in both Delta Djakarta and Multi Bintang 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 Delta Djakarta and Multi Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Djakarta Tbk and Multi Bintang Indonesia, you can compare the effects of market volatilities on Delta Djakarta and Multi Bintang 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 Delta Djakarta with a short position of Multi Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Djakarta and Multi Bintang.
Diversification Opportunities for Delta Djakarta and Multi Bintang
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Delta and Multi is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Delta Djakarta Tbk and Multi Bintang Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Bintang Indonesia and Delta Djakarta 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 Delta Djakarta Tbk are associated (or correlated) with Multi Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Bintang Indonesia has no effect on the direction of Delta Djakarta i.e., Delta Djakarta and Multi Bintang go up and down completely randomly.
Pair Corralation between Delta Djakarta and Multi Bintang
Assuming the 90 days trading horizon Delta Djakarta Tbk is expected to under-perform the Multi Bintang. In addition to that, Delta Djakarta is 1.19 times more volatile than Multi Bintang Indonesia. It trades about -0.36 of its total potential returns per unit of risk. Multi Bintang Indonesia is currently generating about 0.0 per unit of volatility. If you would invest 650,000 in Multi Bintang Indonesia on August 24, 2024 and sell it today you would lose (2,500) from holding Multi Bintang Indonesia or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Djakarta Tbk vs. Multi Bintang Indonesia
Performance |
| Timeline |
| Delta Djakarta Tbk |
| Multi Bintang Indonesia |
Delta Djakarta and Multi Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Djakarta and Multi Bintang
The main advantage of trading using opposite Delta Djakarta and Multi Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Djakarta position performs unexpectedly, Multi Bintang 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 Bintang will offset losses from the drop in Multi Bintang's long position.| Delta Djakarta vs. Charoen Pokphand Indonesia | Delta Djakarta vs. Kalbe Farma Tbk | Delta Djakarta vs. Indofood Cbp Sukses | Delta Djakarta vs. PT Indofood Sukses |
| Multi Bintang vs. Charoen Pokphand Indonesia | Multi Bintang vs. Kalbe Farma Tbk | Multi Bintang vs. Indofood Cbp Sukses | Multi Bintang vs. PT Indofood 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |