Correlation Between Multi Medika and Matahari Department
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Matahari Department 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 Matahari Department 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 Matahari Department Store, you can compare the effects of market volatilities on Multi Medika and Matahari Department 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 Matahari Department. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Matahari Department.
Diversification Opportunities for Multi Medika and Matahari Department
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and Matahari is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Matahari Department Store in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matahari Department Store 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 Matahari Department. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matahari Department Store has no effect on the direction of Multi Medika i.e., Multi Medika and Matahari Department go up and down completely randomly.
Pair Corralation between Multi Medika and Matahari Department
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 3.06 times more return on investment than Matahari Department. However, Multi Medika is 3.06 times more volatile than Matahari Department Store. It trades about 0.03 of its potential returns per unit of risk. Matahari Department Store is currently generating about -0.23 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. Matahari Department Store
Performance |
| Timeline |
| Multi Medika Interna |
| Matahari Department Store |
Multi Medika and Matahari Department Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Matahari Department
The main advantage of trading using opposite Multi Medika and Matahari Department positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Matahari Department 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 Matahari Department will offset losses from the drop in Matahari Department'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 |
| Matahari Department vs. Japfa Comfeed Indonesia | Matahari Department vs. Charoen Pokphand Indonesia | Matahari Department vs. Erajaya Swasembada Tbk | Matahari Department vs. Indofood Cbp Sukses |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world |