Correlation Between Panin Sekuritas and Mandala Multifinance
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas 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 Panin Sekuritas and Mandala Multifinance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panin Sekuritas Tbk and Mandala Multifinance Tbk, you can compare the effects of market volatilities on Panin Sekuritas 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 Panin Sekuritas with a short position of Mandala Multifinance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Mandala Multifinance.
Diversification Opportunities for Panin Sekuritas and Mandala Multifinance
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panin and Mandala is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk 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 Panin Sekuritas 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 Panin Sekuritas Tbk 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 Panin Sekuritas i.e., Panin Sekuritas and Mandala Multifinance go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Mandala Multifinance
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.1 times more return on investment than Mandala Multifinance. However, Panin Sekuritas Tbk is 10.09 times less risky than Mandala Multifinance. It trades about 0.06 of its potential returns per unit of risk. Mandala Multifinance Tbk is currently generating about -0.05 per unit of risk. If you would invest 159,500 in Panin Sekuritas Tbk on October 25, 2024 and sell it today you would earn a total of 1,000.00 from holding Panin Sekuritas Tbk or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Mandala Multifinance Tbk
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Mandala Multifinance Tbk |
Panin Sekuritas and Mandala Multifinance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Mandala Multifinance
The main advantage of trading using opposite Panin Sekuritas and Mandala Multifinance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas 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.| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Panin Financial Tbk | Panin Sekuritas vs. Bank Pan Indonesia | Panin Sekuritas vs. Trimegah Securities Tbk |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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