Correlation Between Asuransi Harta and Mandala Multifinance
Can any of the company-specific risk be diversified away by investing in both Asuransi Harta and Mandala Multifinance 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 Asuransi Harta and Mandala Multifinance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asuransi Harta Aman and Mandala Multifinance Tbk, you can compare the effects of market volatilities on Asuransi Harta and Mandala Multifinance 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 Asuransi Harta with a short position of Mandala Multifinance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asuransi Harta and Mandala Multifinance.
Diversification Opportunities for Asuransi Harta and Mandala Multifinance
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asuransi and Mandala is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Asuransi Harta Aman and Mandala Multifinance Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mandala Multifinance Tbk and Asuransi Harta 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 Asuransi Harta Aman are associated (or correlated) with Mandala Multifinance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mandala Multifinance Tbk has no effect on the direction of Asuransi Harta i.e., Asuransi Harta and Mandala Multifinance go up and down completely randomly.
Pair Corralation between Asuransi Harta and Mandala Multifinance
Assuming the 90 days trading horizon Asuransi Harta is expected to generate 16.95 times less return on investment than Mandala Multifinance. But when comparing it to its historical volatility, Asuransi Harta Aman is 9.06 times less risky than Mandala Multifinance. It trades about 0.03 of its potential returns per unit of risk. Mandala Multifinance Tbk is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 85,610 in Mandala Multifinance Tbk on September 5, 2024 and sell it today you would earn a total of 249,390 from holding Mandala Multifinance Tbk or generate 291.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Asuransi Harta Aman vs. Mandala Multifinance Tbk
Performance |
| Timeline |
| Asuransi Harta Aman |
| Mandala Multifinance Tbk |
Asuransi Harta and Mandala Multifinance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asuransi Harta and Mandala Multifinance
The main advantage of trading using opposite Asuransi Harta and Mandala Multifinance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asuransi Harta position performs unexpectedly, Mandala Multifinance 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 Mandala Multifinance will offset losses from the drop in Mandala Multifinance's long position.| Asuransi Harta vs. Asuransi Bintang Tbk | Asuransi Harta vs. Asuransi Bina Dana | Asuransi Harta vs. Asuransi Dayin Mitra | Asuransi Harta vs. Asuransi Jasa Tania |
| Mandala Multifinance vs. Paninvest Tbk | Mandala Multifinance vs. Mitra Pinasthika Mustika | Mandala Multifinance vs. Jakarta Int Hotels | Mandala Multifinance vs. Asuransi Harta Aman |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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