Correlation Between Uni Charm and Mulia Boga
Can any of the company-specific risk be diversified away by investing in both Uni Charm and Mulia Boga 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 Uni Charm and Mulia Boga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uni Charm Indonesia and Mulia Boga Raya, you can compare the effects of market volatilities on Uni Charm and Mulia Boga 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 Uni Charm with a short position of Mulia Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uni Charm and Mulia Boga.
Diversification Opportunities for Uni Charm and Mulia Boga
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uni and Mulia is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Uni Charm Indonesia and Mulia Boga Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulia Boga Raya and Uni Charm 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 Uni Charm Indonesia are associated (or correlated) with Mulia Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulia Boga Raya has no effect on the direction of Uni Charm i.e., Uni Charm and Mulia Boga go up and down completely randomly.
Pair Corralation between Uni Charm and Mulia Boga
Assuming the 90 days trading horizon Uni Charm Indonesia is expected to under-perform the Mulia Boga. But the stock apears to be less risky and, when comparing its historical volatility, Uni Charm Indonesia is 3.26 times less risky than Mulia Boga. The stock trades about -0.21 of its potential returns per unit of risk. The Mulia Boga Raya is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 147,500 in Mulia Boga Raya on August 31, 2024 and sell it today you would earn a total of 24,500 from holding Mulia Boga Raya or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uni Charm Indonesia vs. Mulia Boga Raya
Performance |
| Timeline |
| Uni Charm Indonesia |
| Mulia Boga Raya |
Uni Charm and Mulia Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uni Charm and Mulia Boga
The main advantage of trading using opposite Uni Charm and Mulia Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uni Charm position performs unexpectedly, Mulia Boga 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 Mulia Boga will offset losses from the drop in Mulia Boga's long position.| Uni Charm vs. Kino Indonesia Tbk | Uni Charm vs. Garudafood Putra Putri | Uni Charm vs. Mulia Boga Raya | Uni Charm vs. Ultra Jaya Milk |
| Mulia Boga vs. Garudafood Putra Putri | Mulia Boga vs. Uni Charm Indonesia | Mulia Boga vs. Campina Ice Cream | Mulia Boga vs. Mitrabara Adiperdana PT |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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