Correlation Between Multi Medika and PP Presisi
Can any of the company-specific risk be diversified away by investing in both Multi Medika and PP Presisi 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 PP Presisi 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 PP Presisi Tbk, you can compare the effects of market volatilities on Multi Medika and PP Presisi 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 PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and PP Presisi.
Diversification Opportunities for Multi Medika and PP Presisi
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and PPRE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi Tbk 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 PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of Multi Medika i.e., Multi Medika and PP Presisi go up and down completely randomly.
Pair Corralation between Multi Medika and PP Presisi
Assuming the 90 days trading horizon Multi Medika Internasional is expected to under-perform the PP Presisi. In addition to that, Multi Medika is 1.68 times more volatile than PP Presisi Tbk. It trades about -0.02 of its total potential returns per unit of risk. PP Presisi Tbk is currently generating about -0.04 per unit of volatility. If you would invest 12,800 in PP Presisi Tbk on September 2, 2024 and sell it today you would lose (6,700) from holding PP Presisi Tbk or give up 52.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. PP Presisi Tbk
Performance |
| Timeline |
| Multi Medika Interna |
| PP Presisi Tbk |
Multi Medika and PP Presisi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and PP Presisi
The main advantage of trading using opposite Multi Medika and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi'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 |
| PP Presisi vs. Matahari Department Store | PP Presisi vs. Multi Medika Internasional | PP Presisi vs. Visi Media Asia | PP Presisi 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |