Correlation Between Mandala Multifinance and Bundamedik Tbk
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Bundamedik Tbk 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 Bundamedik Tbk 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 Bundamedik Tbk PT, you can compare the effects of market volatilities on Mandala Multifinance and Bundamedik Tbk 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 Bundamedik Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Bundamedik Tbk.
Diversification Opportunities for Mandala Multifinance and Bundamedik Tbk
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mandala and Bundamedik is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Bundamedik Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bundamedik Tbk PT 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 Bundamedik Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bundamedik Tbk PT has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Bundamedik Tbk go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Bundamedik Tbk
Assuming the 90 days trading horizon Mandala Multifinance Tbk is expected to generate 22.84 times more return on investment than Bundamedik Tbk. However, Mandala Multifinance is 22.84 times more volatile than Bundamedik Tbk PT. It trades about 0.05 of its potential returns per unit of risk. Bundamedik Tbk PT is currently generating about -0.04 per unit of risk. If you would invest 84,362 in Mandala Multifinance Tbk on September 4, 2024 and sell it today you would earn a total of 250,638 from holding Mandala Multifinance Tbk or generate 297.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Bundamedik Tbk PT
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Bundamedik Tbk PT |
Mandala Multifinance and Bundamedik Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Bundamedik Tbk
The main advantage of trading using opposite Mandala Multifinance and Bundamedik Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Bundamedik Tbk 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 Bundamedik Tbk will offset losses from the drop in Bundamedik Tbk's long position.| Mandala Multifinance vs. Paninvest Tbk | Mandala Multifinance vs. Mitra Pinasthika Mustika | Mandala Multifinance vs. Jakarta Int Hotels | Mandala Multifinance vs. Asuransi Harta Aman |
| Bundamedik Tbk vs. Medikaloka Hermina PT | Bundamedik Tbk vs. Mitra Keluarga Karyasehat | Bundamedik Tbk vs. Mitra Pinasthika Mustika | Bundamedik Tbk vs. Jakarta Int Hotels |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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