Correlation Between Mandala Multifinance and Wahana Inti
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Wahana Inti 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 Wahana Inti 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 Wahana Inti MakmurTbk, you can compare the effects of market volatilities on Mandala Multifinance and Wahana Inti 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 Wahana Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Wahana Inti.
Diversification Opportunities for Mandala Multifinance and Wahana Inti
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mandala and Wahana is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Wahana Inti MakmurTbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Inti MakmurTbk 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 Wahana Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Inti MakmurTbk has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Wahana Inti go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Wahana Inti
If you would invest 8,600 in Wahana Inti MakmurTbk on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Wahana Inti MakmurTbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Wahana Inti MakmurTbk
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Wahana Inti MakmurTbk |
Mandala Multifinance and Wahana Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Wahana Inti
The main advantage of trading using opposite Mandala Multifinance and Wahana Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Wahana Inti 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 Wahana Inti will offset losses from the drop in Wahana Inti'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 |
| Wahana Inti vs. Dharma Satya Nusantara | Wahana Inti vs. Saratoga Investama Sedaya | Wahana Inti vs. Surya Esa Perkasa | Wahana Inti vs. Elang Mahkota Teknologi |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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