Correlation Between Multi Medika and Ateliers Mecaniques
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Ateliers Mecaniques 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 Ateliers Mecaniques 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 Ateliers Mecaniques DIndonesie, you can compare the effects of market volatilities on Multi Medika and Ateliers Mecaniques 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 Ateliers Mecaniques. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Ateliers Mecaniques.
Diversification Opportunities for Multi Medika and Ateliers Mecaniques
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Multi and Ateliers is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Ateliers Mecaniques DIndonesie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ateliers Mecaniques 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 Ateliers Mecaniques. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ateliers Mecaniques has no effect on the direction of Multi Medika i.e., Multi Medika and Ateliers Mecaniques go up and down completely randomly.
Pair Corralation between Multi Medika and Ateliers Mecaniques
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 2.09 times more return on investment than Ateliers Mecaniques. However, Multi Medika is 2.09 times more volatile than Ateliers Mecaniques DIndonesie. It trades about 0.03 of its potential returns per unit of risk. Ateliers Mecaniques DIndonesie is currently generating about 0.01 per unit of risk. If you would invest 7,400 in Multi Medika Internasional on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Multi Medika Internasional or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Ateliers Mecaniques DIndonesie
Performance |
| Timeline |
| Multi Medika Interna |
| Ateliers Mecaniques |
Multi Medika and Ateliers Mecaniques Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Ateliers Mecaniques
The main advantage of trading using opposite Multi Medika and Ateliers Mecaniques positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Ateliers Mecaniques 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 Ateliers Mecaniques will offset losses from the drop in Ateliers Mecaniques' long position.| Multi Medika vs. Gozco Plantations Tbk | Multi Medika vs. Integra Indocabinet Tbk | Multi Medika vs. J Resources Asia | Multi Medika vs. Bhuwanatala Indah Permai |
| Ateliers Mecaniques vs. Matahari Department Store | Ateliers Mecaniques vs. Multi Medika Internasional | Ateliers Mecaniques vs. Visi Media Asia | Ateliers Mecaniques vs. Bayan Resources 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |