Correlation Between Optima Prima and Mandala Multifinance
Can any of the company-specific risk be diversified away by investing in both Optima Prima and Mandala Multifinance 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 Optima Prima and Mandala Multifinance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optima Prima Metal and Mandala Multifinance Tbk, you can compare the effects of market volatilities on Optima Prima and Mandala Multifinance 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 Optima Prima with a short position of Mandala Multifinance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Prima and Mandala Multifinance.
Diversification Opportunities for Optima Prima and Mandala Multifinance
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Optima and Mandala is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Optima Prima Metal and Mandala Multifinance Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mandala Multifinance Tbk and Optima Prima 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 Optima Prima Metal are associated (or correlated) with Mandala Multifinance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mandala Multifinance Tbk has no effect on the direction of Optima Prima i.e., Optima Prima and Mandala Multifinance go up and down completely randomly.
Pair Corralation between Optima Prima and Mandala Multifinance
Assuming the 90 days trading horizon Optima Prima Metal is expected to under-perform the Mandala Multifinance. In addition to that, Optima Prima is 3.03 times more volatile than Mandala Multifinance Tbk. It trades about -0.36 of its total potential returns per unit of risk. Mandala Multifinance Tbk is currently generating about -0.07 per unit of volatility. If you would invest 343,000 in Mandala Multifinance Tbk on August 29, 2024 and sell it today you would lose (8,000) from holding Mandala Multifinance Tbk or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optima Prima Metal vs. Mandala Multifinance Tbk
Performance |
| Timeline |
| Optima Prima Metal |
| Mandala Multifinance Tbk |
Optima Prima and Mandala Multifinance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Prima and Mandala Multifinance
The main advantage of trading using opposite Optima Prima and Mandala Multifinance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Prima position performs unexpectedly, Mandala Multifinance 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 Mandala Multifinance will offset losses from the drop in Mandala Multifinance's long position.| Optima Prima vs. Gunung Raja Paksi | Optima Prima vs. Emdeki Utama Tbk | Optima Prima vs. Nusantara Almazia | Optima Prima vs. Sentral Mitra Informatika |
| Mandala Multifinance vs. Paninvest Tbk | Mandala Multifinance vs. Maskapai Reasuransi Indonesia | Mandala Multifinance vs. Panin Sekuritas Tbk | Mandala Multifinance vs. Wahana Ottomitra Multiartha |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |