Correlation Between Mandala Multifinance and Maskapai Reasuransi
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Maskapai Reasuransi 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 Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia, you can compare the effects of market volatilities on Mandala Multifinance and Maskapai Reasuransi 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 Maskapai Reasuransi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Maskapai Reasuransi.
Diversification Opportunities for Mandala Multifinance and Maskapai Reasuransi
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mandala and Maskapai is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Maskapai Reasuransi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maskapai Reasuransi 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 Maskapai Reasuransi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maskapai Reasuransi has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Maskapai Reasuransi go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Maskapai Reasuransi
Assuming the 90 days trading horizon Mandala Multifinance Tbk is expected to under-perform the Maskapai Reasuransi. In addition to that, Mandala Multifinance is 1.55 times more volatile than Maskapai Reasuransi Indonesia. It trades about -0.07 of its total potential returns per unit of risk. Maskapai Reasuransi Indonesia is currently generating about -0.1 per unit of volatility. If you would invest 100,000 in Maskapai Reasuransi Indonesia on August 27, 2024 and sell it today you would lose (2,000) from holding Maskapai Reasuransi Indonesia or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Maskapai Reasuransi Indonesia
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Maskapai Reasuransi |
Mandala Multifinance and Maskapai Reasuransi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Maskapai Reasuransi
The main advantage of trading using opposite Mandala Multifinance and Maskapai Reasuransi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Maskapai Reasuransi 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 Maskapai Reasuransi will offset losses from the drop in Maskapai Reasuransi'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 |
| Maskapai Reasuransi vs. Lippo General Insurance | Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Mandala Multifinance Tbk | Maskapai Reasuransi vs. Bank Mayapada Internasional |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets |