Correlation Between Indo Acidatama and Multi Medika
Can any of the company-specific risk be diversified away by investing in both Indo Acidatama and Multi Medika 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 Indo Acidatama and Multi Medika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Acidatama Tbk and Multi Medika Internasional, you can compare the effects of market volatilities on Indo Acidatama and Multi Medika 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 Indo Acidatama with a short position of Multi Medika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and Multi Medika.
Diversification Opportunities for Indo Acidatama and Multi Medika
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indo and Multi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and Multi Medika Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Medika Interna and Indo Acidatama 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 Indo Acidatama Tbk are associated (or correlated) with Multi Medika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Medika Interna has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and Multi Medika go up and down completely randomly.
Pair Corralation between Indo Acidatama and Multi Medika
If you would invest 5,000 in Indo Acidatama Tbk on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Indo Acidatama Tbk 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 |
Indo Acidatama Tbk vs. Multi Medika Internasional
Performance |
Timeline |
Indo Acidatama Tbk |
Multi Medika Interna |
Risk-Adjusted Performance
OK
Weak | Strong |
Indo Acidatama and Multi Medika Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Indo Acidatama and Multi Medika
The main advantage of trading using opposite Indo Acidatama and Multi Medika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, Multi Medika 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 Multi Medika will offset losses from the drop in Multi Medika's long position.Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma Tbk |
Multi Medika vs. Indofood Cbp Sukses | Multi Medika vs. Humpuss Intermoda Transportasi | Multi Medika vs. Garudafood Putra Putri | Multi Medika vs. Victoria Insurance Tbk |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |