Correlation Between USWE SPORTS and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and BANK MANDIRI, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and BANK MANDIRI.
Diversification Opportunities for USWE SPORTS and BANK MANDIRI
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between USWE and BANK is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and BANK MANDIRI go up and down completely randomly.
Pair Corralation between USWE SPORTS and BANK MANDIRI
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 0.36 times more return on investment than BANK MANDIRI. However, USWE SPORTS AB is 2.78 times less risky than BANK MANDIRI. It trades about 0.08 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.0 per unit of risk. If you would invest 77.00 in USWE SPORTS AB on October 26, 2024 and sell it today you would earn a total of 5.00 from holding USWE SPORTS AB or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
USWE SPORTS AB vs. BANK MANDIRI
Performance |
| Timeline |
| USWE SPORTS AB |
| BANK MANDIRI |
USWE SPORTS and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and BANK MANDIRI
The main advantage of trading using opposite USWE SPORTS and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. Booking Holdings | USWE SPORTS vs. Oriental Land Co | USWE SPORTS vs. ANTA Sports Products | USWE SPORTS vs. Li Ning Company |
| BANK MANDIRI vs. PLAYTECH | BANK MANDIRI vs. Nok Airlines PCL | BANK MANDIRI vs. ANTA SPORTS PRODUCT | BANK MANDIRI vs. USWE SPORTS AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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