Correlation Between Superior Plus and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and BANK MANDIRI, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and BANK MANDIRI.
Diversification Opportunities for Superior Plus and BANK MANDIRI
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Superior and BANK is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Superior Plus and BANK MANDIRI
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the BANK MANDIRI. In addition to that, Superior Plus is 1.16 times more volatile than BANK MANDIRI. It trades about -0.06 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about -0.01 per unit of volatility. If you would invest 43.00 in BANK MANDIRI on September 1, 2024 and sell it today you would lose (4.00) from holding BANK MANDIRI or give up 9.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Superior Plus Corp vs. BANK MANDIRI
Performance |
| Timeline |
| Superior Plus Corp |
| BANK MANDIRI |
Superior Plus and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and BANK MANDIRI
The main advantage of trading using opposite Superior Plus and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
| BANK MANDIRI vs. SIVERS SEMICONDUCTORS AB | BANK MANDIRI vs. Darden Restaurants | BANK MANDIRI vs. Reliance Steel Aluminum | BANK MANDIRI vs. Q2M Managementberatung AG |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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