Correlation Between Broadwind and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Broadwind 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 Broadwind and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadwind and BANK MANDIRI, you can compare the effects of market volatilities on Broadwind 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 Broadwind with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadwind and BANK MANDIRI.
Diversification Opportunities for Broadwind and BANK MANDIRI
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Broadwind and BANK is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Broadwind and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Broadwind 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 Broadwind 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 Broadwind i.e., Broadwind and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Broadwind and BANK MANDIRI
Assuming the 90 days trading horizon Broadwind is expected to under-perform the BANK MANDIRI. In addition to that, Broadwind is 7.77 times more volatile than BANK MANDIRI. It trades about -0.05 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about 0.23 per unit of volatility. If you would invest 34.00 in BANK MANDIRI on October 27, 2024 and sell it today you would earn a total of 1.00 from holding BANK MANDIRI or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadwind vs. BANK MANDIRI
Performance |
| Timeline |
| Broadwind |
| BANK MANDIRI |
Broadwind and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadwind and BANK MANDIRI
The main advantage of trading using opposite Broadwind and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadwind 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.| Broadwind vs. Sunny Optical Technology | Broadwind vs. Aedas Homes SA | Broadwind vs. Beazer Homes USA | Broadwind vs. Firan Technology Group |
| BANK MANDIRI vs. JLF INVESTMENT | BANK MANDIRI vs. QINGCI GAMES INC | BANK MANDIRI vs. CHRYSALIS INVESTMENTS LTD | BANK MANDIRI vs. DETALION GAMES SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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