Correlation Between GLG LIFE and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both GLG LIFE 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 GLG LIFE and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG LIFE TECH and BANK MANDIRI, you can compare the effects of market volatilities on GLG LIFE 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 GLG LIFE with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and BANK MANDIRI.
Diversification Opportunities for GLG LIFE and BANK MANDIRI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and BANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and GLG LIFE 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 GLG LIFE TECH 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 GLG LIFE i.e., GLG LIFE and BANK MANDIRI go up and down completely randomly.
Pair Corralation between GLG LIFE and BANK MANDIRI
Assuming the 90 days trading horizon GLG LIFE TECH is expected to generate 23.39 times more return on investment than BANK MANDIRI. However, GLG LIFE is 23.39 times more volatile than BANK MANDIRI. It trades about 0.06 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.03 per unit of risk. If you would invest 1.55 in GLG LIFE TECH on October 11, 2024 and sell it today you would earn a total of 0.45 from holding GLG LIFE TECH or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLG LIFE TECH vs. BANK MANDIRI
Performance |
| Timeline |
| GLG LIFE TECH |
| BANK MANDIRI |
GLG LIFE and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and BANK MANDIRI
The main advantage of trading using opposite GLG LIFE and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE 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.| GLG LIFE vs. GMO Internet | GLG LIFE vs. Ribbon Communications | GLG LIFE vs. ecotel communication ag | GLG LIFE vs. China Communications Services |
| BANK MANDIRI vs. ARDAGH METAL PACDL 0001 | BANK MANDIRI vs. Harmony Gold Mining | BANK MANDIRI vs. De Grey Mining | BANK MANDIRI vs. MeVis Medical Solutions |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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