Correlation Between Multi Medika and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Jaya Sukses 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 Jaya Sukses 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 Jaya Sukses Makmur, you can compare the effects of market volatilities on Multi Medika and Jaya Sukses 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 Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Jaya Sukses.
Diversification Opportunities for Multi Medika and Jaya Sukses
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Multi and Jaya is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur 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 Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Multi Medika i.e., Multi Medika and Jaya Sukses go up and down completely randomly.
Pair Corralation between Multi Medika and Jaya Sukses
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 17.52 times more return on investment than Jaya Sukses. However, Multi Medika is 17.52 times more volatile than Jaya Sukses Makmur. It trades about 0.07 of its potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.06 per unit of risk. If you would invest 5,500 in Multi Medika Internasional on September 3, 2024 and sell it today you would earn a total of 2,000 from holding Multi Medika Internasional or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Multi Medika Interna |
| Jaya Sukses Makmur |
Multi Medika and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Jaya Sukses
The main advantage of trading using opposite Multi Medika and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Jaya Sukses 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 Jaya Sukses will offset losses from the drop in Jaya Sukses' 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 |
| Jaya Sukses vs. Intanwijaya Internasional Tbk | Jaya Sukses vs. Champion Pacific Indonesia | Jaya Sukses vs. Mitra Pinasthika Mustika | Jaya Sukses vs. Jakarta Int Hotels |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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