Correlation Between Multi Medika and Nusa Konstruksi
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Nusa Konstruksi 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 Nusa Konstruksi 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 Nusa Konstruksi Enjiniring, you can compare the effects of market volatilities on Multi Medika and Nusa Konstruksi 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 Nusa Konstruksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Nusa Konstruksi.
Diversification Opportunities for Multi Medika and Nusa Konstruksi
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and Nusa is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Nusa Konstruksi Enjiniring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusa Konstruksi Enji 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 Nusa Konstruksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusa Konstruksi Enji has no effect on the direction of Multi Medika i.e., Multi Medika and Nusa Konstruksi go up and down completely randomly.
Pair Corralation between Multi Medika and Nusa Konstruksi
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 3.93 times more return on investment than Nusa Konstruksi. However, Multi Medika is 3.93 times more volatile than Nusa Konstruksi Enjiniring. It trades about 0.09 of its potential returns per unit of risk. Nusa Konstruksi Enjiniring is currently generating about -0.07 per unit of risk. If you would invest 5,000 in Multi Medika Internasional on September 3, 2024 and sell it today you would earn a total of 2,700 from holding Multi Medika Internasional or generate 54.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Nusa Konstruksi Enjiniring
Performance |
| Timeline |
| Multi Medika Interna |
| Nusa Konstruksi Enji |
Multi Medika and Nusa Konstruksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Nusa Konstruksi
The main advantage of trading using opposite Multi Medika and Nusa Konstruksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Nusa Konstruksi 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 Nusa Konstruksi will offset losses from the drop in Nusa Konstruksi'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 |
| Nusa Konstruksi vs. Sentul City Tbk | Nusa Konstruksi vs. Gozco Plantations Tbk | Nusa Konstruksi vs. Bukit Darmo Property | Nusa Konstruksi vs. Total Bangun Persada |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |