Correlation Between Multi Medika and PT MNC
Can any of the company-specific risk be diversified away by investing in both Multi Medika and PT MNC 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 PT MNC 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 PT MNC Energy, you can compare the effects of market volatilities on Multi Medika and PT MNC 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 PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and PT MNC.
Diversification Opportunities for Multi Medika and PT MNC
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Multi and IATA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy 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 PT MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of Multi Medika i.e., Multi Medika and PT MNC go up and down completely randomly.
Pair Corralation between Multi Medika and PT MNC
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 1.64 times more return on investment than PT MNC. However, Multi Medika is 1.64 times more volatile than PT MNC Energy. It trades about 0.07 of its potential returns per unit of risk. PT MNC Energy is currently generating about -0.11 per unit of risk. If you would invest 6,400 in Multi Medika Internasional on September 2, 2024 and sell it today you would earn a total of 1,100 from holding Multi Medika Internasional or generate 17.19% 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. PT MNC Energy
Performance |
| Timeline |
| Multi Medika Interna |
| PT MNC Energy |
Multi Medika and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and PT MNC
The main advantage of trading using opposite Multi Medika and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, PT MNC 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 PT MNC will offset losses from the drop in PT MNC'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 |
| PT MNC vs. Matahari Department Store | PT MNC vs. Multi Medika Internasional | PT MNC vs. Visi Media Asia | PT MNC 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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