Correlation Between PT Multi and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both PT Multi and Mitrabahtera Segara 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 Mitrabahtera Segara 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 Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on PT Multi and Mitrabahtera Segara 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 Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and Mitrabahtera Segara.
Diversification Opportunities for PT Multi and Mitrabahtera Segara
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FOLK and Mitrabahtera is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara 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 Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of PT Multi i.e., PT Multi and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between PT Multi and Mitrabahtera Segara
If you would invest 5,000 in PT Multi Garam on September 19, 2024 and sell it today you would earn a total of 0.00 from holding PT Multi Garam or generate 0.0% 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. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| PT Multi Garam |
| Mitrabahtera Segara |
PT Multi and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Multi and Mitrabahtera Segara
The main advantage of trading using opposite PT Multi and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multi position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara'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 |
| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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