Correlation Between PT Multi and Champion Pacific
Can any of the company-specific risk be diversified away by investing in both PT Multi and Champion Pacific 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 PT Multi and Champion Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Multi Garam and Champion Pacific Indonesia, you can compare the effects of market volatilities on PT Multi and Champion Pacific 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 PT Multi with a short position of Champion Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and Champion Pacific.
Diversification Opportunities for PT Multi and Champion Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FOLK and Champion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam and Champion Pacific Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Pacific Ind and PT Multi 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 PT Multi Garam are associated (or correlated) with Champion Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Pacific Ind has no effect on the direction of PT Multi i.e., PT Multi and Champion Pacific go up and down completely randomly.
Pair Corralation between PT Multi and Champion Pacific
If you would invest 54,000 in Champion Pacific Indonesia on December 30, 2024 and sell it today you would earn a total of 500.00 from holding Champion Pacific Indonesia or generate 0.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PT Multi Garam vs. Champion Pacific Indonesia
Performance |
Timeline |
PT Multi Garam |
Champion Pacific Ind |
PT Multi and Champion Pacific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Multi and Champion Pacific
The main advantage of trading using opposite PT Multi and Champion Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multi position performs unexpectedly, Champion Pacific 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 Champion Pacific will offset losses from the drop in Champion Pacific's long position.PT Multi vs. Optima Prima Metal | PT Multi vs. Garuda Metalindo Tbk | PT Multi vs. Bekasi Fajar Industrial | PT Multi vs. Capital Financial Indonesia |
Champion Pacific vs. Intanwijaya Internasional Tbk | Champion Pacific vs. Asiaplast Industries Tbk | Champion Pacific vs. Trias Sentosa Tbk | Champion Pacific vs. Lotte Chemical Titan |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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