Correlation Between Benchmark Electronics and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics 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 Benchmark Electronics and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and BANK MANDIRI, you can compare the effects of market volatilities on Benchmark Electronics 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 Benchmark Electronics with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and BANK MANDIRI.
Diversification Opportunities for Benchmark Electronics and BANK MANDIRI
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Benchmark and BANK is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Benchmark Electronics 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 Benchmark Electronics 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 Benchmark Electronics i.e., Benchmark Electronics and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Benchmark Electronics and BANK MANDIRI
Assuming the 90 days horizon Benchmark Electronics is expected to generate 1.07 times more return on investment than BANK MANDIRI. However, Benchmark Electronics is 1.07 times more volatile 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 2,187 in Benchmark Electronics on November 16, 2024 and sell it today you would earn a total of 1,873 from holding Benchmark Electronics or generate 85.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Benchmark Electronics vs. BANK MANDIRI
Performance |
Timeline |
Benchmark Electronics |
BANK MANDIRI |
Benchmark Electronics and BANK MANDIRI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Benchmark Electronics and BANK MANDIRI
The main advantage of trading using opposite Benchmark Electronics and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics 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.Benchmark Electronics vs. United Insurance Holdings | ||
Benchmark Electronics vs. ZURICH INSURANCE GROUP | ||
Benchmark Electronics vs. Direct Line Insurance | ||
Benchmark Electronics vs. Corporate Travel Management |
BANK MANDIRI vs. COPLAND ROAD CAPITAL | ||
BANK MANDIRI vs. Kaufman Broad SA | ||
BANK MANDIRI vs. Gaztransport Technigaz SA | ||
BANK MANDIRI vs. Shin Etsu Chemical Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Stocks Directory Find actively traded stocks across global markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |