Correlation Between Supra Boga and Multifiling Mitra
Can any of the company-specific risk be diversified away by investing in both Supra Boga and Multifiling Mitra 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 Supra Boga and Multifiling Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supra Boga Lestari and Multifiling Mitra Indonesia, you can compare the effects of market volatilities on Supra Boga and Multifiling Mitra 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 Supra Boga with a short position of Multifiling Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supra Boga and Multifiling Mitra.
Diversification Opportunities for Supra Boga and Multifiling Mitra
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supra and Multifiling is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Supra Boga Lestari and Multifiling Mitra Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multifiling Mitra and Supra Boga 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 Supra Boga Lestari are associated (or correlated) with Multifiling Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multifiling Mitra has no effect on the direction of Supra Boga i.e., Supra Boga and Multifiling Mitra go up and down completely randomly.
Pair Corralation between Supra Boga and Multifiling Mitra
Assuming the 90 days trading horizon Supra Boga Lestari is expected to under-perform the Multifiling Mitra. But the stock apears to be less risky and, when comparing its historical volatility, Supra Boga Lestari is 1.25 times less risky than Multifiling Mitra. The stock trades about -0.14 of its potential returns per unit of risk. The Multifiling Mitra Indonesia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 120,000 in Multifiling Mitra Indonesia on September 1, 2024 and sell it today you would earn a total of 5,000 from holding Multifiling Mitra Indonesia or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Supra Boga Lestari vs. Multifiling Mitra Indonesia
Performance |
| Timeline |
| Supra Boga Lestari |
| Multifiling Mitra |
Supra Boga and Multifiling Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supra Boga and Multifiling Mitra
The main advantage of trading using opposite Supra Boga and Multifiling Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supra Boga position performs unexpectedly, Multifiling Mitra 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 Multifiling Mitra will offset losses from the drop in Multifiling Mitra's long position.| Supra Boga vs. Bank BRISyariah Tbk | Supra Boga vs. Mitra Pinasthika Mustika | Supra Boga vs. Jakarta Int Hotels | Supra Boga vs. Indosterling Technomedia Tbk |
| Multifiling Mitra vs. Matahari Department Store | Multifiling Mitra vs. Multi Medika Internasional | Multifiling Mitra vs. Visi Media Asia | Multifiling Mitra 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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