Correlation Between Ricky Putra and Multi Prima
Can any of the company-specific risk be diversified away by investing in both Ricky Putra and Multi Prima 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 Ricky Putra and Multi Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ricky Putra Globalindo and Multi Prima Sejahtera, you can compare the effects of market volatilities on Ricky Putra and Multi Prima 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 Ricky Putra with a short position of Multi Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Multi Prima.
Diversification Opportunities for Ricky Putra and Multi Prima
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ricky and Multi is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Multi Prima Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Prima Sejahtera and Ricky Putra 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 Ricky Putra Globalindo are associated (or correlated) with Multi Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Prima Sejahtera has no effect on the direction of Ricky Putra i.e., Ricky Putra and Multi Prima go up and down completely randomly.
Pair Corralation between Ricky Putra and Multi Prima
Assuming the 90 days trading horizon Ricky Putra Globalindo is expected to under-perform the Multi Prima. But the stock apears to be less risky and, when comparing its historical volatility, Ricky Putra Globalindo is 1.05 times less risky than Multi Prima. The stock trades about -0.18 of its potential returns per unit of risk. The Multi Prima Sejahtera is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 41,200 in Multi Prima Sejahtera on September 2, 2024 and sell it today you would lose (1,800) from holding Multi Prima Sejahtera or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ricky Putra Globalindo vs. Multi Prima Sejahtera
Performance |
| Timeline |
| Ricky Putra Globalindo |
| Multi Prima Sejahtera |
Ricky Putra and Multi Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ricky Putra and Multi Prima
The main advantage of trading using opposite Ricky Putra and Multi Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ricky Putra position performs unexpectedly, Multi Prima 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 Prima will offset losses from the drop in Multi Prima's long position.| Ricky Putra vs. Japfa Comfeed Indonesia | Ricky Putra vs. Charoen Pokphand Indonesia | Ricky Putra vs. Erajaya Swasembada Tbk | Ricky Putra vs. Indofood Cbp Sukses |
| Multi Prima vs. Indospring Tbk | Multi Prima vs. Prima Alloy Steel | Multi Prima vs. Kabelindo Murni Tbk | Multi Prima vs. Multistrada Arah Sarana |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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