Correlation Between Multi Medika and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Imago Mulia 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 Imago Mulia 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 Imago Mulia Persada, you can compare the effects of market volatilities on Multi Medika and Imago Mulia 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 Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Imago Mulia.
Diversification Opportunities for Multi Medika and Imago Mulia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multi and Imago is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada 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 Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Multi Medika i.e., Multi Medika and Imago Mulia go up and down completely randomly.
Pair Corralation between Multi Medika and Imago Mulia
Assuming the 90 days trading horizon Multi Medika is expected to generate 1.3 times less return on investment than Imago Mulia. In addition to that, Multi Medika is 1.47 times more volatile than Imago Mulia Persada. It trades about 0.04 of its total potential returns per unit of risk. Imago Mulia Persada is currently generating about 0.08 per unit of volatility. If you would invest 4,424 in Imago Mulia Persada on October 25, 2024 and sell it today you would earn a total of 5,776 from holding Imago Mulia Persada or generate 130.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.66% |
| Values | Daily Returns |
Multi Medika Internasional vs. Imago Mulia Persada
Performance |
| Timeline |
| Multi Medika Interna |
| Imago Mulia Persada |
Multi Medika and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Imago Mulia
The main advantage of trading using opposite Multi Medika and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia's long position.| Multi Medika vs. Merdeka Copper Gold | Multi Medika vs. Wintermar Offshore Marine | Multi Medika vs. Alumindo Light Metal | Multi Medika vs. PT Bank Bisnis |
| Imago Mulia vs. Pt Pradiksi Gunatama | Imago Mulia vs. Sunindo Adipersada Tbk | Imago Mulia vs. Pt Pakuan Tbk | Imago Mulia vs. Integra Indocabinet 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |