Correlation Between Mandala Multifinance and Arkha Jayanti
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Arkha Jayanti 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 Mandala Multifinance and Arkha Jayanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mandala Multifinance Tbk and Arkha Jayanti Persada, you can compare the effects of market volatilities on Mandala Multifinance and Arkha Jayanti 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 Mandala Multifinance with a short position of Arkha Jayanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Arkha Jayanti.
Diversification Opportunities for Mandala Multifinance and Arkha Jayanti
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mandala and Arkha is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Arkha Jayanti Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkha Jayanti Persada and Mandala Multifinance 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 Mandala Multifinance Tbk are associated (or correlated) with Arkha Jayanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkha Jayanti Persada has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Arkha Jayanti go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Arkha Jayanti
Assuming the 90 days trading horizon Mandala Multifinance Tbk is expected to generate 11.95 times more return on investment than Arkha Jayanti. However, Mandala Multifinance is 11.95 times more volatile than Arkha Jayanti Persada. It trades about 0.05 of its potential returns per unit of risk. Arkha Jayanti Persada is currently generating about -0.03 per unit of risk. If you would invest 84,862 in Mandala Multifinance Tbk on September 12, 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 Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Arkha Jayanti Persada
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Arkha Jayanti Persada |
Mandala Multifinance and Arkha Jayanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Arkha Jayanti
The main advantage of trading using opposite Mandala Multifinance and Arkha Jayanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Arkha Jayanti 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 Arkha Jayanti will offset losses from the drop in Arkha Jayanti's long position.| Mandala Multifinance vs. Paninvest Tbk | Mandala Multifinance vs. Maskapai Reasuransi Indonesia | Mandala Multifinance vs. Panin Sekuritas Tbk | Mandala Multifinance vs. Wahana Ottomitra Multiartha |
| Arkha Jayanti vs. Berkah Prima Perkasa | Arkha Jayanti vs. Jasnita Telekomindo Tbk | Arkha Jayanti vs. Darmi Bersaudara Tbk | Arkha Jayanti vs. Agro Yasa Lestari |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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