Correlation Between Mandala Multifinance and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Trimegah Karya 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 Trimegah Karya 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 Trimegah Karya Pratama, you can compare the effects of market volatilities on Mandala Multifinance and Trimegah Karya 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 Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Trimegah Karya.
Diversification Opportunities for Mandala Multifinance and Trimegah Karya
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mandala and Trimegah is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama 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 Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Trimegah Karya go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Trimegah Karya
Assuming the 90 days trading horizon Mandala Multifinance Tbk is expected to generate 13.35 times more return on investment than Trimegah Karya. However, Mandala Multifinance is 13.35 times more volatile than Trimegah Karya Pratama. It trades about 0.05 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about 0.0 per unit of risk. If you would invest 97,368 in Mandala Multifinance Tbk on September 2, 2024 and sell it today you would earn a total of 237,632 from holding Mandala Multifinance Tbk or generate 244.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Trimegah Karya Pratama |
Mandala Multifinance and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Trimegah Karya
The main advantage of trading using opposite Mandala Multifinance and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.| Mandala Multifinance vs. Bank BRISyariah Tbk | Mandala Multifinance vs. Ace Hardware Indonesia | Mandala Multifinance vs. Merdeka Copper Gold | Mandala Multifinance vs. Mitra Pinasthika Mustika |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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