Correlation Between Multipolar Technology and Sentral Mitra
Can any of the company-specific risk be diversified away by investing in both Multipolar Technology and Sentral Mitra 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 Multipolar Technology and Sentral Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multipolar Technology Tbk and Sentral Mitra Informatika, you can compare the effects of market volatilities on Multipolar Technology and Sentral Mitra 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 Multipolar Technology with a short position of Sentral Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multipolar Technology and Sentral Mitra.
Diversification Opportunities for Multipolar Technology and Sentral Mitra
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multipolar and Sentral is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Multipolar Technology Tbk and Sentral Mitra Informatika in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentral Mitra Informatika and Multipolar Technology 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 Multipolar Technology Tbk are associated (or correlated) with Sentral Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentral Mitra Informatika has no effect on the direction of Multipolar Technology i.e., Multipolar Technology and Sentral Mitra go up and down completely randomly.
Pair Corralation between Multipolar Technology and Sentral Mitra
Assuming the 90 days trading horizon Multipolar Technology Tbk is expected to generate 1.54 times more return on investment than Sentral Mitra. However, Multipolar Technology is 1.54 times more volatile than Sentral Mitra Informatika. It trades about 0.16 of its potential returns per unit of risk. Sentral Mitra Informatika is currently generating about -0.01 per unit of risk. If you would invest 155,081 in Multipolar Technology Tbk on November 27, 2024 and sell it today you would earn a total of 3,672,419 from holding Multipolar Technology Tbk or generate 2368.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multipolar Technology Tbk vs. Sentral Mitra Informatika
Performance |
| Timeline |
| Multipolar Technology Tbk |
| Sentral Mitra Informatika |
Multipolar Technology and Sentral Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multipolar Technology and Sentral Mitra
The main advantage of trading using opposite Multipolar Technology and Sentral Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multipolar Technology position performs unexpectedly, Sentral Mitra 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 Sentral Mitra will offset losses from the drop in Sentral Mitra's long position.| Multipolar Technology vs. Link Net Tbk | Multipolar Technology vs. Metrodata Electronics Tbk | Multipolar Technology vs. Mitra Pinasthika Mustika | Multipolar Technology vs. Multipolar Tbk |
| Sentral Mitra vs. Kioson Komersial Indonesia | Sentral Mitra vs. Multipolar Technology Tbk | Sentral Mitra vs. Hensel Davest Indonesia | Sentral Mitra vs. NFC Indonesia 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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