Correlation Between Multifiling Mitra and Midi Utama
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and Midi Utama 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 Midi Utama 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 Midi Utama Indonesia, you can compare the effects of market volatilities on Multifiling Mitra and Midi Utama 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 Midi Utama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and Midi Utama.
Diversification Opportunities for Multifiling Mitra and Midi Utama
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Multifiling and Midi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and Midi Utama Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midi Utama Indonesia 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 Midi Utama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midi Utama Indonesia has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and Midi Utama go up and down completely randomly.
Pair Corralation between Multifiling Mitra and Midi Utama
If you would invest 130,000 in Multifiling Mitra Indonesia on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Multifiling Mitra Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multifiling Mitra Indonesia vs. Midi Utama Indonesia
Performance |
| Timeline |
| Multifiling Mitra |
| Midi Utama Indonesia |
Multifiling Mitra and Midi Utama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and Midi Utama
The main advantage of trading using opposite Multifiling Mitra and Midi Utama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, Midi Utama 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 Midi Utama will offset losses from the drop in Midi Utama'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 |
| Midi Utama vs. Sumber Alfaria Trijaya | Midi Utama vs. Hero Supermarket Tbk | Midi Utama vs. Supra Boga Lestari | Midi Utama vs. Multi Indocitra 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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