Correlation Between Multipolar Technology and Wira Global
Can any of the company-specific risk be diversified away by investing in both Multipolar Technology and Wira Global 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 Wira Global 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 Wira Global Solusi, you can compare the effects of market volatilities on Multipolar Technology and Wira Global 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 Wira Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multipolar Technology and Wira Global.
Diversification Opportunities for Multipolar Technology and Wira Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multipolar and Wira is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Multipolar Technology Tbk and Wira Global Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wira Global Solusi 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 Wira Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wira Global Solusi has no effect on the direction of Multipolar Technology i.e., Multipolar Technology and Wira Global go up and down completely randomly.
Pair Corralation between Multipolar Technology and Wira Global
Assuming the 90 days trading horizon Multipolar Technology Tbk is expected to generate 1.8 times more return on investment than Wira Global. However, Multipolar Technology is 1.8 times more volatile than Wira Global Solusi. It trades about 0.18 of its potential returns per unit of risk. Wira Global Solusi is currently generating about -0.03 per unit of risk. If you would invest 157,166 in Multipolar Technology Tbk on September 3, 2024 and sell it today you would earn a total of 2,047,834 from holding Multipolar Technology Tbk or generate 1302.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multipolar Technology Tbk vs. Wira Global Solusi
Performance |
| Timeline |
| Multipolar Technology Tbk |
| Wira Global Solusi |
Multipolar Technology and Wira Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multipolar Technology and Wira Global
The main advantage of trading using opposite Multipolar Technology and Wira Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multipolar Technology position performs unexpectedly, Wira Global 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 Wira Global will offset losses from the drop in Wira Global's long position.| Multipolar Technology vs. Astra Graphia Tbk | Multipolar Technology vs. Mitra Pinasthika Mustika | Multipolar Technology vs. Jakarta Int Hotels | Multipolar Technology vs. Asuransi Harta Aman |
| Wira Global vs. Trimegah Karya Pratama | Wira Global vs. Jaya Swarasa Agung | Wira Global vs. RMK Energy PT | Wira Global vs. Dayamitra Telekomunikasi 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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