Correlation Between Tourindo Guide and Mandala Multifinance
Can any of the company-specific risk be diversified away by investing in both Tourindo Guide 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 Tourindo Guide and Mandala Multifinance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tourindo Guide Indonesia and Mandala Multifinance Tbk, you can compare the effects of market volatilities on Tourindo Guide 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 Tourindo Guide with a short position of Mandala Multifinance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tourindo Guide and Mandala Multifinance.
Diversification Opportunities for Tourindo Guide and Mandala Multifinance
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tourindo and Mandala is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tourindo Guide Indonesia 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 Tourindo Guide 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 Tourindo Guide Indonesia 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 Tourindo Guide i.e., Tourindo Guide and Mandala Multifinance go up and down completely randomly.
Pair Corralation between Tourindo Guide and Mandala Multifinance
Assuming the 90 days trading horizon Tourindo Guide Indonesia is expected to generate 0.73 times more return on investment than Mandala Multifinance. However, Tourindo Guide Indonesia is 1.36 times less risky than Mandala Multifinance. It trades about 0.33 of its potential returns per unit of risk. Mandala Multifinance Tbk is currently generating about -0.07 per unit of risk. If you would invest 9,000 in Tourindo Guide Indonesia on August 29, 2024 and sell it today you would earn a total of 700.00 from holding Tourindo Guide Indonesia or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tourindo Guide Indonesia vs. Mandala Multifinance Tbk
Performance |
| Timeline |
| Tourindo Guide Indonesia |
| Mandala Multifinance Tbk |
Tourindo Guide and Mandala Multifinance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tourindo Guide and Mandala Multifinance
The main advantage of trading using opposite Tourindo Guide and Mandala Multifinance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tourindo Guide 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.| Tourindo Guide vs. Cashlez Worldwide Indonesia | Tourindo Guide vs. Sentral Mitra Informatika | Tourindo Guide vs. NFC Indonesia PT | Tourindo Guide vs. Hensel Davest Indonesia |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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