Correlation Between Multi Medika and Asahimas Flat
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Asahimas Flat 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 Multi Medika and Asahimas Flat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Medika Internasional and Asahimas Flat Glass, you can compare the effects of market volatilities on Multi Medika and Asahimas Flat 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 Multi Medika with a short position of Asahimas Flat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Asahimas Flat.
Diversification Opportunities for Multi Medika and Asahimas Flat
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and Asahimas is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Asahimas Flat Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahimas Flat Glass and Multi Medika 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 Multi Medika Internasional are associated (or correlated) with Asahimas Flat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahimas Flat Glass has no effect on the direction of Multi Medika i.e., Multi Medika and Asahimas Flat go up and down completely randomly.
Pair Corralation between Multi Medika and Asahimas Flat
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 4.32 times more return on investment than Asahimas Flat. However, Multi Medika is 4.32 times more volatile than Asahimas Flat Glass. It trades about 0.06 of its potential returns per unit of risk. Asahimas Flat Glass is currently generating about -0.09 per unit of risk. If you would invest 5,500 in Multi Medika Internasional on September 3, 2024 and sell it today you would earn a total of 2,000 from holding Multi Medika Internasional or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Asahimas Flat Glass
Performance |
| Timeline |
| Multi Medika Interna |
| Asahimas Flat Glass |
Multi Medika and Asahimas Flat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Asahimas Flat
The main advantage of trading using opposite Multi Medika and Asahimas Flat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Asahimas Flat 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 Asahimas Flat will offset losses from the drop in Asahimas Flat's long position.| Multi Medika vs. Indo Acidatama Tbk | Multi Medika vs. PT Boston Furniture | Multi Medika vs. Global Mediacom Tbk | Multi Medika vs. First Media Tbk |
| Asahimas Flat vs. Arwana Citramulia Tbk | Asahimas Flat vs. Asiaplast Industries Tbk | Asahimas Flat vs. Argha Karya Prima | Asahimas Flat vs. Astra Graphia 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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