Correlation Between Mandala Multifinance and PT Techno9
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and PT Techno9 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 Techno9 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 Techno9 Indonesia, you can compare the effects of market volatilities on Mandala Multifinance and PT Techno9 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 Techno9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and PT Techno9.
Diversification Opportunities for Mandala Multifinance and PT Techno9
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mandala and NINE is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and PT Techno9 Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Techno9 Indonesia 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 Techno9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Techno9 Indonesia has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and PT Techno9 go up and down completely randomly.
Pair Corralation between Mandala Multifinance and PT Techno9
Assuming the 90 days trading horizon Mandala Multifinance Tbk is expected to under-perform the PT Techno9. In addition to that, Mandala Multifinance is 1.51 times more volatile than PT Techno9 Indonesia. It trades about -0.13 of its total potential returns per unit of risk. PT Techno9 Indonesia is currently generating about 0.23 per unit of volatility. If you would invest 20,400 in PT Techno9 Indonesia on November 28, 2024 and sell it today you would earn a total of 2,000 from holding PT Techno9 Indonesia or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. PT Techno9 Indonesia
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| PT Techno9 Indonesia |
Mandala Multifinance and PT Techno9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and PT Techno9
The main advantage of trading using opposite Mandala Multifinance and PT Techno9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, PT Techno9 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 Techno9 will offset losses from the drop in PT Techno9'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 |
| PT Techno9 vs. Ace Hardware Indonesia | PT Techno9 vs. Garuda Metalindo Tbk | PT Techno9 vs. Lippo General Insurance | PT Techno9 vs. Pacific Strategic Financial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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