Correlation Between Multifiling Mitra and Cashlez Worldwide
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and Cashlez Worldwide 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 Multifiling Mitra and Cashlez Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multifiling Mitra Indonesia and Cashlez Worldwide Indonesia, you can compare the effects of market volatilities on Multifiling Mitra and Cashlez Worldwide 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 Multifiling Mitra with a short position of Cashlez Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and Cashlez Worldwide.
Diversification Opportunities for Multifiling Mitra and Cashlez Worldwide
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multifiling and Cashlez is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and Cashlez Worldwide Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cashlez Worldwide and Multifiling Mitra 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 Multifiling Mitra Indonesia are associated (or correlated) with Cashlez Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cashlez Worldwide has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and Cashlez Worldwide go up and down completely randomly.
Pair Corralation between Multifiling Mitra and Cashlez Worldwide
Assuming the 90 days trading horizon Multifiling Mitra Indonesia is expected to generate 0.7 times more return on investment than Cashlez Worldwide. However, Multifiling Mitra Indonesia is 1.42 times less risky than Cashlez Worldwide. It trades about 0.07 of its potential returns per unit of risk. Cashlez Worldwide Indonesia is currently generating about 0.01 per unit of risk. If you would invest 66,043 in Multifiling Mitra Indonesia on September 12, 2024 and sell it today you would earn a total of 47,957 from holding Multifiling Mitra Indonesia or generate 72.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multifiling Mitra Indonesia vs. Cashlez Worldwide Indonesia
Performance |
| Timeline |
| Multifiling Mitra |
| Cashlez Worldwide |
Multifiling Mitra and Cashlez Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and Cashlez Worldwide
The main advantage of trading using opposite Multifiling Mitra and Cashlez Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, Cashlez Worldwide 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 Cashlez Worldwide will offset losses from the drop in Cashlez Worldwide's long position.| Multifiling Mitra vs. Midi Utama Indonesia | Multifiling Mitra vs. Jasuindo Tiga Perkasa | Multifiling Mitra vs. Multi Indocitra Tbk | Multifiling Mitra vs. Kokoh Inti Arebama |
| Cashlez Worldwide vs. Digital Mediatama Maxima | Cashlez Worldwide vs. Hensel Davest Indonesia | Cashlez Worldwide vs. Kioson Komersial Indonesia | Cashlez Worldwide vs. Anabatic Technologies Tbk |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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