Correlation Between Multifiling Mitra and PT Kusuma
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and PT Kusuma 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 PT Kusuma 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 PT Kusuma Kemindo, you can compare the effects of market volatilities on Multifiling Mitra and PT Kusuma 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 PT Kusuma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and PT Kusuma.
Diversification Opportunities for Multifiling Mitra and PT Kusuma
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multifiling and KKES is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and PT Kusuma Kemindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kusuma Kemindo 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 PT Kusuma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kusuma Kemindo has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and PT Kusuma go up and down completely randomly.
Pair Corralation between Multifiling Mitra and PT Kusuma
Assuming the 90 days trading horizon Multifiling Mitra Indonesia is expected to generate 0.53 times more return on investment than PT Kusuma. However, Multifiling Mitra Indonesia is 1.88 times less risky than PT Kusuma. It trades about -0.24 of its potential returns per unit of risk. PT Kusuma Kemindo is currently generating about -0.47 per unit of risk. If you would invest 130,500 in Multifiling Mitra Indonesia on September 2, 2024 and sell it today you would lose (5,500) from holding Multifiling Mitra Indonesia or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Multifiling Mitra Indonesia vs. PT Kusuma Kemindo
Performance |
| Timeline |
| Multifiling Mitra |
| PT Kusuma Kemindo |
Multifiling Mitra and PT Kusuma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and PT Kusuma
The main advantage of trading using opposite Multifiling Mitra and PT Kusuma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, PT Kusuma 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 PT Kusuma will offset losses from the drop in PT Kusuma's long position.| Multifiling Mitra vs. Matahari Department Store | Multifiling Mitra vs. Multi Medika Internasional | Multifiling Mitra vs. Visi Media Asia | Multifiling Mitra vs. Bayan Resources Tbk |
| PT Kusuma vs. PT Hetzer Medical | PT Kusuma vs. Bangun Karya Perkasa | PT Kusuma vs. PT Dewi Shri | PT Kusuma vs. PT Sari Kreasi |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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