Correlation Between Caseys General and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Caseys General 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 Caseys General and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and BANK MANDIRI, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and BANK MANDIRI.
Diversification Opportunities for Caseys General and BANK MANDIRI
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caseys and BANK is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Caseys General and BANK MANDIRI
If you would invest 38,400 in Caseys General Stores on November 1, 2024 and sell it today you would earn a total of 1,600 from holding Caseys General Stores or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Caseys General Stores vs. BANK MANDIRI
Performance |
| Timeline |
| Caseys General Stores |
| BANK MANDIRI |
Caseys General and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and BANK MANDIRI
The main advantage of trading using opposite Caseys General and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General 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.| Caseys General vs. CHRYSALIS INVESTMENTS LTD | Caseys General vs. Zijin Mining Group | Caseys General vs. ECHO INVESTMENT ZY | Caseys General vs. SLR Investment Corp |
| BANK MANDIRI vs. Costco Wholesale Corp | BANK MANDIRI vs. Caseys General Stores | BANK MANDIRI vs. Luckin Coffee | BANK MANDIRI vs. Perseus Mining Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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