Correlation Between Multistrada Arah and Bank Ina

Can any of the company-specific risk be diversified away by investing in both Multistrada Arah and Bank Ina 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 Multistrada Arah and Bank Ina into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Multistrada Arah Sarana and Bank Ina Perdana, you can compare the effects of market volatilities on Multistrada Arah and Bank Ina 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 Multistrada Arah with a short position of Bank Ina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multistrada Arah and Bank Ina.

Diversification Opportunities for Multistrada Arah and Bank Ina

0.0

Correlation Coefficient

Multistrada Arah  Bank Ina

Pay attention - limited upside

The 3 months correlation between Multistrada and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multistrada Arah Sarana and Bank Ina Perdana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ina Perdana and Multistrada Arah 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 Multistrada Arah Sarana are associated (or correlated) with Bank Ina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ina Perdana has no effect on the direction of Multistrada Arah i.e., Multistrada Arah and Bank Ina go up and down completely randomly.

Pair Corralation between Multistrada Arah and Bank Ina

If you would invest  404,000  in Bank Ina Perdana on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Bank Ina Perdana or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Multistrada Arah Sarana  vs.  Bank Ina Perdana

Multistrada Arah Sarana

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Multistrada Arah Sarana has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Multistrada Arah is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bank Ina Perdana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bank Ina Perdana has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Bank Ina is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Multistrada Arah and Bank Ina

The main advantage of trading using opposite Multistrada Arah and Bank Ina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multistrada Arah position performs unexpectedly, Bank Ina 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 Bank Ina will offset losses from the drop in Bank Ina's long position.

The idea behind Multistrada Arah Sarana and Bank Ina Perdana pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.