Correlation Between Multifiling Mitra and MD Pictures
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and MD Pictures 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 MD Pictures 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 MD Pictures Tbk, you can compare the effects of market volatilities on Multifiling Mitra and MD Pictures 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 MD Pictures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and MD Pictures.
Diversification Opportunities for Multifiling Mitra and MD Pictures
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multifiling and FILM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and MD Pictures Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MD Pictures Tbk 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 MD Pictures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MD Pictures Tbk has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and MD Pictures go up and down completely randomly.
Pair Corralation between Multifiling Mitra and MD Pictures
Assuming the 90 days trading horizon Multifiling Mitra Indonesia is expected to generate 0.58 times more return on investment than MD Pictures. However, Multifiling Mitra Indonesia is 1.72 times less risky than MD Pictures. It trades about 0.07 of its potential returns per unit of risk. MD Pictures Tbk is currently generating about 0.04 per unit of risk. If you would invest 68,025 in Multifiling Mitra Indonesia on January 23, 2025 and sell it today you would earn a total of 61,975 from holding Multifiling Mitra Indonesia or generate 91.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Multifiling Mitra Indonesia vs. MD Pictures Tbk
Performance |
| Timeline |
| Multifiling Mitra |
| MD Pictures Tbk |
Multifiling Mitra and MD Pictures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and MD Pictures
The main advantage of trading using opposite Multifiling Mitra and MD Pictures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, MD Pictures 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 MD Pictures will offset losses from the drop in MD Pictures' long position.| Multifiling Mitra vs. PT Temas Tbk | Multifiling Mitra vs. Dosni Roha Indonesia | Multifiling Mitra vs. Rig Tenders Tbk | Multifiling Mitra vs. Samudera Indonesia Tbk |
| MD Pictures vs. MNC Studios International | MD Pictures vs. Elang Mahkota Teknologi | MD Pictures vs. Medikaloka Hermina PT | MD Pictures vs. Surya Esa Perkasa |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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