Correlation Between Multifiling Mitra and Supra Boga
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and Supra Boga 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 Supra Boga 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 Supra Boga Lestari, you can compare the effects of market volatilities on Multifiling Mitra and Supra Boga 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 Supra Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and Supra Boga.
Diversification Opportunities for Multifiling Mitra and Supra Boga
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multifiling and Supra is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and Supra Boga Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supra Boga Lestari 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 Supra Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supra Boga Lestari has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and Supra Boga go up and down completely randomly.
Pair Corralation between Multifiling Mitra and Supra Boga
If you would invest 130,000 in Multifiling Mitra Indonesia on December 1, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multifiling Mitra Indonesia vs. Supra Boga Lestari
Performance |
| Timeline |
| Multifiling Mitra |
| Supra Boga Lestari |
Multifiling Mitra and Supra Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and Supra Boga
The main advantage of trading using opposite Multifiling Mitra and Supra Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, Supra Boga 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 Supra Boga will offset losses from the drop in Supra Boga'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 |
| Supra Boga vs. Nippon Indosari Corpindo | Supra Boga vs. Ramayana Lestari Sentosa | Supra Boga vs. Midi Utama Indonesia | Supra Boga vs. Hero Supermarket 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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