Correlation Between Multi Agro and Sentra Food
Can any of the company-specific risk be diversified away by investing in both Multi Agro and Sentra Food 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 Agro and Sentra Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Agro Gemilang and Sentra Food Indonesia, you can compare the effects of market volatilities on Multi Agro and Sentra Food 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 Agro with a short position of Sentra Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Agro and Sentra Food.
Diversification Opportunities for Multi Agro and Sentra Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Sentra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Agro Gemilang and Sentra Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentra Food Indonesia and Multi Agro 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 Agro Gemilang are associated (or correlated) with Sentra Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentra Food Indonesia has no effect on the direction of Multi Agro i.e., Multi Agro and Sentra Food go up and down completely randomly.
Pair Corralation between Multi Agro and Sentra Food
If you would invest 11,600 in Sentra Food Indonesia on September 12, 2024 and sell it today you would earn a total of 200.00 from holding Sentra Food Indonesia or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Multi Agro Gemilang vs. Sentra Food Indonesia
Performance |
| Timeline |
| Multi Agro Gemilang |
| Sentra Food Indonesia |
Multi Agro and Sentra Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Agro and Sentra Food
The main advantage of trading using opposite Multi Agro and Sentra Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Agro position performs unexpectedly, Sentra Food 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 Sentra Food will offset losses from the drop in Sentra Food's long position.| Multi Agro vs. Sentra Food Indonesia | Multi Agro vs. Indofood Cbp Sukses | Multi Agro vs. FKS Food Sejahtera | Multi Agro vs. Humpuss Intermoda Transportasi |
| Sentra Food vs. Garudafood Putra Putri | Sentra Food vs. Wijaya Karya Bangunan | Sentra Food vs. Mitrabara Adiperdana PT | Sentra Food vs. PT Multi Garam |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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