Correlation Between Multifiling Mitra and Personel Alih
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and Personel Alih 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 Personel Alih 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 Personel Alih Daya, you can compare the effects of market volatilities on Multifiling Mitra and Personel Alih 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 Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and Personel Alih.
Diversification Opportunities for Multifiling Mitra and Personel Alih
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multifiling and Personel is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya 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 Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and Personel Alih go up and down completely randomly.
Pair Corralation between Multifiling Mitra and Personel Alih
Assuming the 90 days trading horizon Multifiling Mitra Indonesia is expected to generate 0.34 times more return on investment than Personel Alih. However, Multifiling Mitra Indonesia is 2.92 times less risky than Personel Alih. It trades about 0.1 of its potential returns per unit of risk. Personel Alih Daya is currently generating about -0.09 per unit of risk. If you would invest 120,000 in Multifiling Mitra Indonesia on August 30, 2024 and sell it today you would earn a total of 5,000 from holding Multifiling Mitra Indonesia or generate 4.17% 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. Personel Alih Daya
Performance |
| Timeline |
| Multifiling Mitra |
| Personel Alih Daya |
Multifiling Mitra and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and Personel Alih
The main advantage of trading using opposite Multifiling Mitra and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih'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 |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima PT |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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