Correlation Between JLF INVESTMENT and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT 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 JLF INVESTMENT and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and BANK MANDIRI, you can compare the effects of market volatilities on JLF INVESTMENT 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 JLF INVESTMENT with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and BANK MANDIRI.
Diversification Opportunities for JLF INVESTMENT and BANK MANDIRI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLF and BANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT i.e., JLF INVESTMENT and BANK MANDIRI go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and BANK MANDIRI
If you would invest 34.00 in BANK MANDIRI on October 28, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLF INVESTMENT vs. BANK MANDIRI
Performance |
| Timeline |
| JLF INVESTMENT |
| BANK MANDIRI |
JLF INVESTMENT and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and BANK MANDIRI
The main advantage of trading using opposite JLF INVESTMENT and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT 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.| JLF INVESTMENT vs. ALTAIR RES INC | JLF INVESTMENT vs. FAIR ISAAC | JLF INVESTMENT vs. Altair Engineering | JLF INVESTMENT vs. Xenia Hotels Resorts |
| BANK MANDIRI vs. Kingdee International Software | BANK MANDIRI vs. Fevertree Drinks PLC | BANK MANDIRI vs. Align Technology | BANK MANDIRI vs. THAI BEVERAGE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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