Correlation Between COFCO Joycome and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and BANK MANDIRI 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 COFCO Joycome and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and BANK MANDIRI, you can compare the effects of market volatilities on COFCO Joycome and BANK MANDIRI 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 COFCO Joycome with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and BANK MANDIRI.
Diversification Opportunities for COFCO Joycome and BANK MANDIRI
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COFCO and BANK is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and BANK MANDIRI go up and down completely randomly.
Pair Corralation between COFCO Joycome and BANK MANDIRI
Assuming the 90 days horizon COFCO Joycome is expected to generate 25.03 times less return on investment than BANK MANDIRI. In addition to that, COFCO Joycome is 1.31 times more volatile than BANK MANDIRI. It trades about 0.01 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about 0.33 per unit of volatility. If you would invest 32.00 in BANK MANDIRI on October 24, 2024 and sell it today you would earn a total of 3.00 from holding BANK MANDIRI or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. BANK MANDIRI
Performance |
| Timeline |
| COFCO Joycome Foods |
| BANK MANDIRI |
COFCO Joycome and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and BANK MANDIRI
The main advantage of trading using opposite COFCO Joycome and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| COFCO Joycome vs. Nestl SA | COFCO Joycome vs. General Mills | COFCO Joycome vs. General Mills | COFCO Joycome vs. Danone SA |
| BANK MANDIRI vs. Easy Software AG | BANK MANDIRI vs. SCOTT TECHNOLOGY | BANK MANDIRI vs. Performance Food Group | BANK MANDIRI vs. COFCO Joycome Foods |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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