Correlation Between Multi Medika and Citra Marga
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Citra Marga 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 Citra Marga 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 Citra Marga Nusaphala, you can compare the effects of market volatilities on Multi Medika and Citra Marga 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 Citra Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Citra Marga.
Diversification Opportunities for Multi Medika and Citra Marga
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Multi and Citra is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Citra Marga Nusaphala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Marga Nusaphala 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 Citra Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Marga Nusaphala has no effect on the direction of Multi Medika i.e., Multi Medika and Citra Marga go up and down completely randomly.
Pair Corralation between Multi Medika and Citra Marga
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 6.62 times more return on investment than Citra Marga. However, Multi Medika is 6.62 times more volatile than Citra Marga Nusaphala. It trades about 0.03 of its potential returns per unit of risk. Citra Marga Nusaphala is currently generating about -0.15 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Citra Marga Nusaphala
Performance |
| Timeline |
| Multi Medika Interna |
| Citra Marga Nusaphala |
Multi Medika and Citra Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Citra Marga
The main advantage of trading using opposite Multi Medika and Citra Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Citra Marga 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 Citra Marga will offset losses from the drop in Citra Marga's 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 |
| Citra Marga vs. Matahari Department Store | Citra Marga vs. Multi Medika Internasional | Citra Marga vs. Visi Media Asia | Citra Marga 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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