Correlation Between PT Multi and PT Cerestar
Can any of the company-specific risk be diversified away by investing in both PT Multi and PT Cerestar 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 PT Cerestar 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 PT Cerestar Indonesia, you can compare the effects of market volatilities on PT Multi and PT Cerestar 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 PT Cerestar. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and PT Cerestar.
Diversification Opportunities for PT Multi and PT Cerestar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FOLK and TRGU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam and PT Cerestar Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cerestar Indonesia 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 PT Cerestar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cerestar Indonesia has no effect on the direction of PT Multi i.e., PT Multi and PT Cerestar go up and down completely randomly.
Pair Corralation between PT Multi and PT Cerestar
If you would invest 0.00 in PT Multi Garam on December 4, 2024 and sell it today you would earn a total of 0.00 from holding PT Multi Garam or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.72% |
Values | Daily Returns |
PT Multi Garam vs. PT Cerestar Indonesia
Performance |
Timeline |
PT Multi Garam |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Cerestar Indonesia |
PT Multi and PT Cerestar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Multi and PT Cerestar
The main advantage of trading using opposite PT Multi and PT Cerestar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multi position performs unexpectedly, PT Cerestar 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 PT Cerestar will offset losses from the drop in PT Cerestar's long position.PT Multi vs. Trinitan Metals and | PT Multi vs. Smartfren Telecom Tbk | PT Multi vs. Optima Prima Metal | PT Multi vs. Tridomain Performance Materials |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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