Correlation Between DETALION GAMES and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both DETALION GAMES 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 DETALION GAMES and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DETALION GAMES SA and BANK MANDIRI, you can compare the effects of market volatilities on DETALION GAMES 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 DETALION GAMES with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of DETALION GAMES and BANK MANDIRI.
Diversification Opportunities for DETALION GAMES and BANK MANDIRI
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DETALION and BANK is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding DETALION GAMES SA and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and DETALION GAMES 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 DETALION GAMES SA 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 DETALION GAMES i.e., DETALION GAMES and BANK MANDIRI go up and down completely randomly.
Pair Corralation between DETALION GAMES and BANK MANDIRI
Assuming the 90 days horizon DETALION GAMES SA is expected to under-perform the BANK MANDIRI. In addition to that, DETALION GAMES is 1.78 times more volatile than BANK MANDIRI. It trades about -0.02 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 33.00 in BANK MANDIRI on October 16, 2024 and sell it today you would lose (1.00) from holding BANK MANDIRI or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DETALION GAMES SA vs. BANK MANDIRI
Performance |
| Timeline |
| DETALION GAMES SA |
| BANK MANDIRI |
DETALION GAMES and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DETALION GAMES and BANK MANDIRI
The main advantage of trading using opposite DETALION GAMES and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DETALION GAMES 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.| DETALION GAMES vs. Yuexiu Transport Infrastructure | DETALION GAMES vs. ETFS Coffee ETC | DETALION GAMES vs. Commercial Vehicle Group | DETALION GAMES vs. USWE SPORTS AB |
| BANK MANDIRI vs. Zijin Mining Group | BANK MANDIRI vs. MAGNUM MINING EXP | BANK MANDIRI vs. DETALION GAMES SA | BANK MANDIRI vs. FRACTAL GAMING GROUP |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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