Correlation Between Multi Medika and Pelita Samudera
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Pelita Samudera 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 Pelita Samudera 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 Pelita Samudera Shipping, you can compare the effects of market volatilities on Multi Medika and Pelita Samudera 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 Pelita Samudera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Pelita Samudera.
Diversification Opportunities for Multi Medika and Pelita Samudera
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Multi and Pelita is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Pelita Samudera Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelita Samudera Shipping 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 Pelita Samudera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelita Samudera Shipping has no effect on the direction of Multi Medika i.e., Multi Medika and Pelita Samudera go up and down completely randomly.
Pair Corralation between Multi Medika and Pelita Samudera
Assuming the 90 days trading horizon Multi Medika Internasional is expected to under-perform the Pelita Samudera. In addition to that, Multi Medika is 3.47 times more volatile than Pelita Samudera Shipping. It trades about -0.04 of its total potential returns per unit of risk. Pelita Samudera Shipping is currently generating about 0.0 per unit of volatility. If you would invest 45,290 in Pelita Samudera Shipping on September 3, 2024 and sell it today you would lose (3,690) from holding Pelita Samudera Shipping or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Pelita Samudera Shipping
Performance |
| Timeline |
| Multi Medika Interna |
| Pelita Samudera Shipping |
Multi Medika and Pelita Samudera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Pelita Samudera
The main advantage of trading using opposite Multi Medika and Pelita Samudera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Pelita Samudera 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 Pelita Samudera will offset losses from the drop in Pelita Samudera'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 |
| Pelita Samudera vs. Samudera Indonesia Tbk | Pelita Samudera vs. Pelayaran Nelly Dwi | Pelita Samudera vs. Buana Listya Tama | Pelita Samudera vs. Mitrabahtera Segara Sejati |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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