Correlation Between Matahari Department and Multifiling Mitra
Can any of the company-specific risk be diversified away by investing in both Matahari Department and Multifiling Mitra 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 Matahari Department and Multifiling Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matahari Department Store and Multifiling Mitra Indonesia, you can compare the effects of market volatilities on Matahari Department and Multifiling Mitra 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 Matahari Department with a short position of Multifiling Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matahari Department and Multifiling Mitra.
Diversification Opportunities for Matahari Department and Multifiling Mitra
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Matahari and Multifiling is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Matahari Department Store and Multifiling Mitra Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multifiling Mitra and Matahari Department 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 Matahari Department Store are associated (or correlated) with Multifiling Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multifiling Mitra has no effect on the direction of Matahari Department i.e., Matahari Department and Multifiling Mitra go up and down completely randomly.
Pair Corralation between Matahari Department and Multifiling Mitra
Assuming the 90 days trading horizon Matahari Department Store is expected to generate 1.31 times more return on investment than Multifiling Mitra. However, Matahari Department is 1.31 times more volatile than Multifiling Mitra Indonesia. It trades about -0.13 of its potential returns per unit of risk. Multifiling Mitra Indonesia is currently generating about -0.25 per unit of risk. If you would invest 146,000 in Matahari Department Store on September 3, 2024 and sell it today you would lose (4,500) from holding Matahari Department Store or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Matahari Department Store vs. Multifiling Mitra Indonesia
Performance |
| Timeline |
| Matahari Department Store |
| Multifiling Mitra |
Matahari Department and Multifiling Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matahari Department and Multifiling Mitra
The main advantage of trading using opposite Matahari Department and Multifiling Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matahari Department position performs unexpectedly, Multifiling Mitra 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 Multifiling Mitra will offset losses from the drop in Multifiling Mitra's long position.| Matahari Department vs. Surya Citra Media | Matahari Department vs. Akr Corporindo Tbk | Matahari Department vs. Media Nusantara Citra | Matahari Department vs. Pembangunan Perumahan PT |
| Multifiling Mitra vs. Intanwijaya Internasional Tbk | Multifiling Mitra vs. Champion Pacific Indonesia | Multifiling Mitra vs. Mitra Pinasthika Mustika | Multifiling Mitra vs. Jakarta Int Hotels |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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