Correlation Between Mandala Multifinance and Verena Multi
Can any of the company-specific risk be diversified away by investing in both Mandala Multifinance and Verena Multi 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 Verena Multi 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 Verena Multi Finance, you can compare the effects of market volatilities on Mandala Multifinance and Verena Multi 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 Verena Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mandala Multifinance and Verena Multi.
Diversification Opportunities for Mandala Multifinance and Verena Multi
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mandala and Verena is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mandala Multifinance Tbk and Verena Multi Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verena Multi Finance 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 Verena Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verena Multi Finance has no effect on the direction of Mandala Multifinance i.e., Mandala Multifinance and Verena Multi go up and down completely randomly.
Pair Corralation between Mandala Multifinance and Verena Multi
Assuming the 90 days trading horizon Mandala Multifinance Tbk is expected to under-perform the Verena Multi. But the stock apears to be less risky and, when comparing its historical volatility, Mandala Multifinance Tbk is 1.19 times less risky than Verena Multi. The stock trades about -0.07 of its potential returns per unit of risk. The Verena Multi Finance is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 9,000 in Verena Multi Finance on August 28, 2024 and sell it today you would lose (100.00) from holding Verena Multi Finance or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mandala Multifinance Tbk vs. Verena Multi Finance
Performance |
| Timeline |
| Mandala Multifinance Tbk |
| Verena Multi Finance |
Mandala Multifinance and Verena Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mandala Multifinance and Verena Multi
The main advantage of trading using opposite Mandala Multifinance and Verena Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mandala Multifinance position performs unexpectedly, Verena Multi 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 Verena Multi will offset losses from the drop in Verena Multi'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 |
| Verena Multi vs. Wahana Ottomitra Multiartha | Verena Multi vs. Trust Finance Indonesia | Verena Multi vs. Yulie Sekurindo Tbk | Verena Multi vs. Bank Woori Saudara |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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