Correlation Between Mandala Multifinance and Multi Medika
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Multi Medika 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 Multi Medika 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 Multi Medika Internasional, you can compare the effects of market volatilities on Mandala Multifinance and Multi Medika 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 Multi Medika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Multi Medika.
Diversification Opportunities for Mandala Multifinance and Multi Medika
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mandala and Multi is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Multi Medika Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Medika Interna 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 Multi Medika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Medika Interna has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Multi Medika go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Multi Medika
If you would invest 7,000 in Multi Medika Internasional on September 12, 2024 and sell it today you would earn a total of 1,200 from holding Multi Medika Internasional or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Multi Medika Internasional
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Multi Medika Interna |
Mandala Multifinance and Multi Medika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Multi Medika
The main advantage of trading using opposite Mandala Multifinance and Multi Medika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Multi Medika 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 Multi Medika will offset losses from the drop in Multi Medika'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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