Correlation Between Dupont De and Mandala Multifinance
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Mandala Multifinance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Mandala Multifinance Tbk, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Mandala Multifinance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Mandala Multifinance.
Diversification Opportunities for Dupont De and Mandala Multifinance
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Mandala is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Mandala Multifinance go up and down completely randomly.
Pair Corralation between Dupont De and Mandala Multifinance
Allowing for the 90-day total investment horizon Dupont De is expected to generate 38.42 times less return on investment than Mandala Multifinance. But when comparing it to its historical volatility, Dupont De Nemours is 29.33 times less risky than Mandala Multifinance. It trades about 0.04 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 84,862 in Mandala Multifinance Tbk on August 28, 2024 and sell it today you would earn a total of 250,138 from holding Mandala Multifinance Tbk or generate 294.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.56% |
| Values | Daily Returns |
Dupont De Nemours vs. Mandala Multifinance Tbk
Performance |
| Timeline |
| Dupont De Nemours |
| Mandala Multifinance Tbk |
Dupont De and Mandala Multifinance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Mandala Multifinance
The main advantage of trading using opposite Dupont De and Mandala Multifinance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Mandala Multifinance vs. Paninvest Tbk | Mandala Multifinance vs. Maskapai Reasuransi Indonesia | Mandala Multifinance vs. Panin Sekuritas Tbk | Mandala Multifinance vs. Wahana Ottomitra Multiartha |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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