Correlation Between PT Mandiri and Arwana Citramulia
Can any of the company-specific risk be diversified away by investing in both PT Mandiri and Arwana Citramulia 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 Mandiri and Arwana Citramulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Mandiri Herindo and Arwana Citramulia Tbk, you can compare the effects of market volatilities on PT Mandiri and Arwana Citramulia 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 Mandiri with a short position of Arwana Citramulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Mandiri and Arwana Citramulia.
Diversification Opportunities for PT Mandiri and Arwana Citramulia
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between MAHA and Arwana is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PT Mandiri Herindo and Arwana Citramulia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arwana Citramulia Tbk and PT Mandiri 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 Mandiri Herindo are associated (or correlated) with Arwana Citramulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arwana Citramulia Tbk has no effect on the direction of PT Mandiri i.e., PT Mandiri and Arwana Citramulia go up and down completely randomly.
Pair Corralation between PT Mandiri and Arwana Citramulia
Assuming the 90 days trading horizon PT Mandiri Herindo is expected to under-perform the Arwana Citramulia. In addition to that, PT Mandiri is 2.57 times more volatile than Arwana Citramulia Tbk. It trades about -0.14 of its total potential returns per unit of risk. Arwana Citramulia Tbk is currently generating about -0.23 per unit of volatility. If you would invest 76,500 in Arwana Citramulia Tbk on August 30, 2024 and sell it today you would lose (2,500) from holding Arwana Citramulia Tbk or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Mandiri Herindo vs. Arwana Citramulia Tbk
Performance |
| Timeline |
| PT Mandiri Herindo |
| Arwana Citramulia Tbk |
PT Mandiri and Arwana Citramulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Mandiri and Arwana Citramulia
The main advantage of trading using opposite PT Mandiri and Arwana Citramulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Mandiri position performs unexpectedly, Arwana Citramulia 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 Arwana Citramulia will offset losses from the drop in Arwana Citramulia's long position.| PT Mandiri vs. Weha Transportasi Indonesia | PT Mandiri vs. Nanotech Indonesia Global | PT Mandiri vs. PT Jobubu Jarum | PT Mandiri vs. Indonesian Tobacco Tbk |
| Arwana Citramulia vs. Asahimas Flat Glass | Arwana Citramulia vs. Astra Graphia Tbk | Arwana Citramulia vs. Ekadharma International Tbk | Arwana Citramulia vs. Akasha Wira International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |