Correlation Between Satria Mega and Multifiling Mitra
Can any of the company-specific risk be diversified away by investing in both Satria Mega 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 Satria Mega and Multifiling Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satria Mega Kencana and Multifiling Mitra Indonesia, you can compare the effects of market volatilities on Satria Mega 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 Satria Mega with a short position of Multifiling Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satria Mega and Multifiling Mitra.
Diversification Opportunities for Satria Mega and Multifiling Mitra
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Satria and Multifiling is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Satria Mega Kencana and Multifiling Mitra Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multifiling Mitra and Satria Mega 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 Satria Mega Kencana 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 Satria Mega i.e., Satria Mega and Multifiling Mitra go up and down completely randomly.
Pair Corralation between Satria Mega and Multifiling Mitra
Assuming the 90 days trading horizon Satria Mega Kencana is expected to under-perform the Multifiling Mitra. In addition to that, Satria Mega is 1.33 times more volatile than Multifiling Mitra Indonesia. It trades about -0.15 of its total potential returns per unit of risk. Multifiling Mitra Indonesia is currently generating about 0.1 per unit of volatility. If you would invest 120,000 in Multifiling Mitra Indonesia on August 30, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satria Mega Kencana vs. Multifiling Mitra Indonesia
Performance |
| Timeline |
| Satria Mega Kencana |
| Multifiling Mitra |
Satria Mega and Multifiling Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satria Mega and Multifiling Mitra
The main advantage of trading using opposite Satria Mega and Multifiling Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satria Mega 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.| Satria Mega vs. Shield On Service | Satria Mega vs. MNC Studios International | Satria Mega vs. Royal Prima PT | Satria Mega vs. Sanurhasta Mitra PT |
| Multifiling Mitra vs. Midi Utama Indonesia | Multifiling Mitra vs. Jasuindo Tiga Perkasa | Multifiling Mitra vs. Multi Indocitra Tbk | Multifiling Mitra vs. Kokoh Inti Arebama |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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