Correlation Between Mandala Multifinance and PT Kusuma
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and PT Kusuma 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 PT Kusuma 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 PT Kusuma Kemindo, you can compare the effects of market volatilities on Mandala Multifinance and PT Kusuma 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 PT Kusuma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and PT Kusuma.
Diversification Opportunities for Mandala Multifinance and PT Kusuma
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mandala and KKES is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and PT Kusuma Kemindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kusuma Kemindo 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 PT Kusuma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kusuma Kemindo has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and PT Kusuma go up and down completely randomly.
Pair Corralation between Mandala Multifinance and PT Kusuma
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 | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. PT Kusuma Kemindo
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| PT Kusuma Kemindo |
Mandala Multifinance and PT Kusuma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and PT Kusuma
The main advantage of trading using opposite Mandala Multifinance and PT Kusuma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, PT Kusuma 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 PT Kusuma will offset losses from the drop in PT Kusuma's long position.| Mandala Multifinance vs. Bank BRISyariah Tbk | Mandala Multifinance vs. Ace Hardware Indonesia | Mandala Multifinance vs. Merdeka Copper Gold | Mandala Multifinance vs. Mitra Pinasthika Mustika |
| PT Kusuma vs. PT Hetzer Medical | PT Kusuma vs. Bangun Karya Perkasa | PT Kusuma vs. PT Dewi Shri | PT Kusuma vs. PT Sari Kreasi |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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