Correlation Between Merdeka Copper and Multi Medika
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Multi Medika 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 Merdeka Copper and Multi Medika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merdeka Copper Gold and Multi Medika Internasional, you can compare the effects of market volatilities on Merdeka Copper and Multi Medika 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 Merdeka Copper with a short position of Multi Medika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Multi Medika.
Diversification Opportunities for Merdeka Copper and Multi Medika
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merdeka and Multi is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Multi Medika Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Medika Interna and Merdeka Copper 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 Merdeka Copper Gold are associated (or correlated) with Multi Medika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Medika Interna has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Multi Medika go up and down completely randomly.
Pair Corralation between Merdeka Copper and Multi Medika
Assuming the 90 days trading horizon Merdeka Copper is expected to generate 41.09 times less return on investment than Multi Medika. But when comparing it to its historical volatility, Merdeka Copper Gold is 2.88 times less risky than Multi Medika. It trades about 0.03 of its potential returns per unit of risk. Multi Medika Internasional is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 9,000 in Multi Medika Internasional on October 25, 2024 and sell it today you would earn a total of 14,200 from holding Multi Medika Internasional or generate 157.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Multi Medika Internasional
Performance |
| Timeline |
| Merdeka Copper Gold |
| Multi Medika Interna |
Merdeka Copper and Multi Medika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Multi Medika
The main advantage of trading using opposite Merdeka Copper and Multi Medika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Multi Medika 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 Medika will offset losses from the drop in Multi Medika's long position.| Merdeka Copper vs. Asiaplast Industries Tbk | Merdeka Copper vs. Argha Karya Prima | Merdeka Copper vs. Indal Aluminium Industry | Merdeka Copper vs. Alakasa Industrindo Tbk |
| Multi Medika vs. Merdeka Copper Gold | Multi Medika vs. Wintermar Offshore Marine | Multi Medika vs. Alumindo Light Metal | Multi Medika vs. PT Bank Bisnis |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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