Correlation Between Nusantara Infrastructure and Mandala Multifinance
Can any of the company-specific risk be diversified away by investing in both Nusantara Infrastructure 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 Nusantara Infrastructure and Mandala Multifinance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nusantara Infrastructure Tbk and Mandala Multifinance Tbk, you can compare the effects of market volatilities on Nusantara Infrastructure 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 Nusantara Infrastructure with a short position of Mandala Multifinance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusantara Infrastructure and Mandala Multifinance.
Diversification Opportunities for Nusantara Infrastructure and Mandala Multifinance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nusantara and Mandala is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nusantara Infrastructure Tbk 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 Nusantara Infrastructure 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 Nusantara Infrastructure Tbk 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 Nusantara Infrastructure i.e., Nusantara Infrastructure and Mandala Multifinance go up and down completely randomly.
Pair Corralation between Nusantara Infrastructure and Mandala Multifinance
If you would invest 335,000 in Mandala Multifinance Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Mandala Multifinance Tbk 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 |
Nusantara Infrastructure Tbk vs. Mandala Multifinance Tbk
Performance |
| Timeline |
| Nusantara Infrastructure |
| Mandala Multifinance Tbk |
Nusantara Infrastructure and Mandala Multifinance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nusantara Infrastructure and Mandala Multifinance
The main advantage of trading using opposite Nusantara Infrastructure and Mandala Multifinance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nusantara Infrastructure 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.| Nusantara Infrastructure vs. Kawasan Industri Jababeka | Nusantara Infrastructure vs. Modernland Realty Ltd | Nusantara Infrastructure vs. Multipolar Tbk | Nusantara Infrastructure vs. Lautan Luas Tbk |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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