Correlation Between PT Multi and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both PT Multi and Citatah 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 PT Multi and Citatah Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Multi Garam and Citatah Tbk, you can compare the effects of market volatilities on PT Multi and Citatah 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 PT Multi with a short position of Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and Citatah Tbk.
Diversification Opportunities for PT Multi and Citatah Tbk
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between FOLK and Citatah is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah Tbk and PT Multi 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 PT Multi Garam are associated (or correlated) with Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of PT Multi i.e., PT Multi and Citatah Tbk go up and down completely randomly.
Pair Corralation between PT Multi and Citatah Tbk
If you would invest 2,400 in Citatah Tbk on September 19, 2024 and sell it today you would earn a total of 200.00 from holding Citatah Tbk or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Multi Garam vs. Citatah Tbk
Performance |
| Timeline |
| PT Multi Garam |
| Citatah Tbk |
PT Multi and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Multi and Citatah Tbk
The main advantage of trading using opposite PT Multi and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multi position performs unexpectedly, Citatah 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 Citatah Tbk will offset losses from the drop in Citatah Tbk's long position.| PT Multi vs. Bank Central Asia | PT Multi vs. Bank Rakyat Indonesia | PT Multi vs. Bayan Resources Tbk | PT Multi vs. Bank Mandiri Persero |
| Citatah Tbk vs. Kedaung Indah Can | Citatah Tbk vs. Kabelindo Murni Tbk | Citatah Tbk vs. Champion Pacific Indonesia | Citatah Tbk vs. Bhuwanatala Indah Permai |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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