Correlation Between Comba Telecom and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Comba Telecom 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 Comba Telecom and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and BANK MANDIRI, you can compare the effects of market volatilities on Comba Telecom 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 Comba Telecom with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and BANK MANDIRI.
Diversification Opportunities for Comba Telecom and BANK MANDIRI
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comba and BANK is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Comba Telecom 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 Comba Telecom Systems 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 Comba Telecom i.e., Comba Telecom and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Comba Telecom and BANK MANDIRI
Assuming the 90 days trading horizon Comba Telecom Systems is expected to under-perform the BANK MANDIRI. In addition to that, Comba Telecom is 4.39 times more volatile than BANK MANDIRI. It trades about -0.13 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about -0.24 per unit of volatility. If you would invest 33.00 in BANK MANDIRI on October 18, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. BANK MANDIRI
Performance |
| Timeline |
| Comba Telecom Systems |
| BANK MANDIRI |
Comba Telecom and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and BANK MANDIRI
The main advantage of trading using opposite Comba Telecom and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom 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.| Comba Telecom vs. Information Services International Dentsu | Comba Telecom vs. CAIRN HOMES EO | Comba Telecom vs. DATAGROUP SE | Comba Telecom vs. Automatic Data Processing |
| BANK MANDIRI vs. Comba Telecom Systems | BANK MANDIRI vs. KINGBOARD CHEMICAL | BANK MANDIRI vs. China BlueChemical | BANK MANDIRI vs. SK TELECOM TDADR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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