Correlation Between Digital Mediatama and Multi Medika
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and Multi Medika 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 Digital Mediatama and Multi Medika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Mediatama Maxima and Multi Medika Internasional, you can compare the effects of market volatilities on Digital Mediatama and Multi Medika 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 Digital Mediatama with a short position of Multi Medika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and Multi Medika.
Diversification Opportunities for Digital Mediatama and Multi Medika
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Digital and Multi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and Multi Medika Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Medika Interna and Digital Mediatama 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 Digital Mediatama Maxima are associated (or correlated) with Multi Medika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Medika Interna has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and Multi Medika go up and down completely randomly.
Pair Corralation between Digital Mediatama and Multi Medika
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 0.79 times more return on investment than Multi Medika. However, Digital Mediatama Maxima is 1.27 times less risky than Multi Medika. It trades about 0.01 of its potential returns per unit of risk. Multi Medika Internasional is currently generating about -0.02 per unit of risk. If you would invest 25,400 in Digital Mediatama Maxima on September 14, 2024 and sell it today you would lose (2,200) from holding Digital Mediatama Maxima or give up 8.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Digital Mediatama Maxima vs. Multi Medika Internasional
Performance |
| Timeline |
| Digital Mediatama Maxima |
| Multi Medika Interna |
Digital Mediatama and Multi Medika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and Multi Medika
The main advantage of trading using opposite Digital Mediatama and Multi Medika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, Multi Medika 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 Medika will offset losses from the drop in Multi Medika's long position.| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti | Digital Mediatama vs. NFC Indonesia PT |
| Multi Medika vs. Digital Mediatama Maxima | Multi Medika vs. United Tractors Tbk | Multi Medika vs. Integra Indocabinet Tbk | Multi Medika vs. PT MNC Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |