Correlation Between Multifiling Mitra and PT Winner
Can any of the company-specific risk be diversified away by investing in both Multifiling Mitra and PT Winner 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 Winner 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 Winner Nusantara, you can compare the effects of market volatilities on Multifiling Mitra and PT Winner 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 Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multifiling Mitra and PT Winner.
Diversification Opportunities for Multifiling Mitra and PT Winner
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Multifiling and WINR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Multifiling Mitra Indonesia and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Multifiling Mitra i.e., Multifiling Mitra and PT Winner go up and down completely randomly.
Pair Corralation between Multifiling Mitra and PT Winner
Assuming the 90 days trading horizon Multifiling Mitra Indonesia is expected to generate 0.66 times more return on investment than PT Winner. However, Multifiling Mitra Indonesia is 1.52 times less risky than PT Winner. It trades about 0.16 of its potential returns per unit of risk. PT Winner Nusantara is currently generating about 0.05 per unit of risk. If you would invest 69,500 in Multifiling Mitra Indonesia on September 1, 2024 and sell it today you would earn a total of 55,500 from holding Multifiling Mitra Indonesia or generate 79.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Multifiling Mitra Indonesia vs. PT Winner Nusantara
Performance |
| Timeline |
| Multifiling Mitra |
| PT Winner Nusantara |
Multifiling Mitra and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multifiling Mitra and PT Winner
The main advantage of trading using opposite Multifiling Mitra and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multifiling Mitra position performs unexpectedly, PT Winner 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 Winner will offset losses from the drop in PT Winner'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 Winner vs. Pollux Properti Indonesia | PT Winner vs. Jaya Sukses Makmur | PT Winner vs. Natura City Developments | PT Winner vs. Maha Properti Indonesia |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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