Correlation Between Mandala Multifinance and Mnc Land
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Mnc Land 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 Mnc Land 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 Mnc Land Tbk, you can compare the effects of market volatilities on Mandala Multifinance and Mnc Land 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 Mnc Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Mnc Land.
Diversification Opportunities for Mandala Multifinance and Mnc Land
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mandala and Mnc is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Mnc Land Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Land Tbk 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 Mnc Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Land Tbk has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Mnc Land go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Mnc Land
If you would invest 335,000 in Mandala Multifinance Tbk on August 31, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Mnc Land Tbk
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Mnc Land Tbk |
Mandala Multifinance and Mnc Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Mnc Land
The main advantage of trading using opposite Mandala Multifinance and Mnc Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Mnc Land 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 Mnc Land will offset losses from the drop in Mnc Land'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 |
| Mnc Land vs. Modernland Realty Ltd | Mnc Land vs. Jaya Real Property | Mnc Land vs. Lippo Cikarang Tbk | Mnc Land 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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