Correlation Between Multi Prima and Pan Brothers
Can any of the company-specific risk be diversified away by investing in both Multi Prima and Pan Brothers 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 Multi Prima and Pan Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Prima Sejahtera and Pan Brothers Tbk, you can compare the effects of market volatilities on Multi Prima and Pan Brothers 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 Multi Prima with a short position of Pan Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Prima and Pan Brothers.
Diversification Opportunities for Multi Prima and Pan Brothers
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multi and Pan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Multi Prima Sejahtera and Pan Brothers Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Brothers Tbk and Multi Prima 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 Multi Prima Sejahtera are associated (or correlated) with Pan Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Brothers Tbk has no effect on the direction of Multi Prima i.e., Multi Prima and Pan Brothers go up and down completely randomly.
Pair Corralation between Multi Prima and Pan Brothers
If you would invest 2,300 in Pan Brothers Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Pan Brothers Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Multi Prima Sejahtera vs. Pan Brothers Tbk
Performance |
| Timeline |
| Multi Prima Sejahtera |
| Pan Brothers Tbk |
Multi Prima and Pan Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Prima and Pan Brothers
The main advantage of trading using opposite Multi Prima and Pan Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Prima position performs unexpectedly, Pan Brothers 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 Pan Brothers will offset losses from the drop in Pan Brothers' long position.| Multi Prima vs. Indospring Tbk | Multi Prima vs. Prima Alloy Steel | Multi Prima vs. Kabelindo Murni Tbk | Multi Prima vs. Multistrada Arah Sarana |
| Pan Brothers vs. Japfa Comfeed Indonesia | Pan Brothers vs. Charoen Pokphand Indonesia | Pan Brothers vs. Erajaya Swasembada Tbk | Pan Brothers vs. Indofood Cbp 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |