Correlation Between Multi Spunindo and Multi Agro
Can any of the company-specific risk be diversified away by investing in both Multi Spunindo and Multi Agro 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 Spunindo and Multi Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Spunindo Jaya and Multi Agro Gemilang, you can compare the effects of market volatilities on Multi Spunindo and Multi Agro 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 Spunindo with a short position of Multi Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Spunindo and Multi Agro.
Diversification Opportunities for Multi Spunindo and Multi Agro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Multi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Spunindo Jaya and Multi Agro Gemilang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Agro Gemilang and Multi Spunindo 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 Spunindo Jaya are associated (or correlated) with Multi Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Agro Gemilang has no effect on the direction of Multi Spunindo i.e., Multi Spunindo and Multi Agro go up and down completely randomly.
Pair Corralation between Multi Spunindo and Multi Agro
If you would invest 5,000 in Multi Agro Gemilang on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Multi Agro Gemilang or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Spunindo Jaya vs. Multi Agro Gemilang
Performance |
| Timeline |
| Multi Spunindo Jaya |
| Multi Agro Gemilang |
Multi Spunindo and Multi Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Spunindo and Multi Agro
The main advantage of trading using opposite Multi Spunindo and Multi Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Spunindo position performs unexpectedly, Multi Agro 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 Multi Agro will offset losses from the drop in Multi Agro's long position.| Multi Spunindo vs. PT Homeco Victoria | Multi Spunindo vs. Tera Data Indonusa | Multi Spunindo vs. Dharma Polimetal Tbk | Multi Spunindo vs. Metrodata Electronics Tbk |
| Multi Agro vs. Weha Transportasi Indonesia | Multi Agro vs. Sentra Food Indonesia | Multi Agro vs. Eastparc Hotel Tbk | Multi Agro vs. Fast Food 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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