Correlation Between Humpuss Intermoda and Multi Spunindo
Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda and Multi Spunindo 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 Humpuss Intermoda and Multi Spunindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humpuss Intermoda Transportasi and Multi Spunindo Jaya, you can compare the effects of market volatilities on Humpuss Intermoda and Multi Spunindo 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 Humpuss Intermoda with a short position of Multi Spunindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and Multi Spunindo.
Diversification Opportunities for Humpuss Intermoda and Multi Spunindo
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Humpuss and Multi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi and Multi Spunindo Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Spunindo Jaya and Humpuss Intermoda 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 Humpuss Intermoda Transportasi are associated (or correlated) with Multi Spunindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Spunindo Jaya has no effect on the direction of Humpuss Intermoda i.e., Humpuss Intermoda and Multi Spunindo go up and down completely randomly.
Pair Corralation between Humpuss Intermoda and Multi Spunindo
If you would invest 33,240 in Multi Spunindo Jaya on November 3, 2024 and sell it today you would lose (3,040) from holding Multi Spunindo Jaya or give up 9.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.43% |
| Values | Daily Returns |
Humpuss Intermoda Transportasi vs. Multi Spunindo Jaya
Performance |
| Timeline |
| Humpuss Intermoda |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Multi Spunindo Jaya |
Humpuss Intermoda and Multi Spunindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humpuss Intermoda and Multi Spunindo
The main advantage of trading using opposite Humpuss Intermoda and Multi Spunindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda position performs unexpectedly, Multi Spunindo 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 Spunindo will offset losses from the drop in Multi Spunindo's long position.| Humpuss Intermoda vs. PT MNC Energy | Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Rig Tenders Tbk |
| Multi Spunindo vs. Indorama Synthetics Tbk | Multi Spunindo vs. Dharma Polimetal Tbk | Multi Spunindo vs. Hero Supermarket Tbk | Multi Spunindo vs. Chandra Asri Petrochemical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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