Correlation Between Media Nusantara and PT Multi
Can any of the company-specific risk be diversified away by investing in both Media Nusantara and PT Multi 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 Media Nusantara and PT Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media Nusantara Citra and PT Multi Garam, you can compare the effects of market volatilities on Media Nusantara and PT Multi 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 Media Nusantara with a short position of PT Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Nusantara and PT Multi.
Diversification Opportunities for Media Nusantara and PT Multi
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Media and FOLK is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Media Nusantara Citra and PT Multi Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Multi Garam and Media Nusantara 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 Media Nusantara Citra are associated (or correlated) with PT Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Multi Garam has no effect on the direction of Media Nusantara i.e., Media Nusantara and PT Multi go up and down completely randomly.
Pair Corralation between Media Nusantara and PT Multi
If you would invest 5,000 in PT Multi Garam on October 9, 2024 and sell it today you would earn a total of 0.00 from holding PT Multi Garam or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Media Nusantara Citra vs. PT Multi Garam
Performance |
| Timeline |
| Media Nusantara Citra |
| PT Multi Garam |
Media Nusantara and PT Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Nusantara and PT Multi
The main advantage of trading using opposite Media Nusantara and PT Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Nusantara position performs unexpectedly, PT Multi 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 PT Multi will offset losses from the drop in PT Multi's long position.| Media Nusantara vs. Global Mediacom Tbk | Media Nusantara vs. Surya Citra Media | Media Nusantara vs. Akr Corporindo Tbk | Media Nusantara vs. Bumi Serpong Damai |
| PT Multi vs. Ashmore Asset Management | PT Multi vs. Equity Development Investment | PT Multi vs. HK Metals Utama | PT Multi vs. Ace Hardware Indonesia |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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