Correlation Between Data Modul and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Data Modul 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 Data Modul and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Modul AG and BANK MANDIRI, you can compare the effects of market volatilities on Data Modul 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 Data Modul with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and BANK MANDIRI.
Diversification Opportunities for Data Modul and BANK MANDIRI
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Data and BANK is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Data Modul 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 Data Modul AG 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 Data Modul i.e., Data Modul and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Data Modul and BANK MANDIRI
Assuming the 90 days trading horizon Data Modul AG is expected to under-perform the BANK MANDIRI. But the stock apears to be less risky and, when comparing its historical volatility, Data Modul AG is 3.36 times less risky than BANK MANDIRI. The stock trades about -0.09 of its potential returns per unit of risk. The BANK MANDIRI is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 32.00 in BANK MANDIRI on October 16, 2024 and sell it today you would lose (3.00) from holding BANK MANDIRI or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data Modul AG vs. BANK MANDIRI
Performance |
| Timeline |
| Data Modul AG |
| BANK MANDIRI |
Data Modul and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Modul and BANK MANDIRI
The main advantage of trading using opposite Data Modul and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Modul 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.The idea behind Data Modul AG and BANK MANDIRI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BANK MANDIRI vs. JAPAN AIRLINES | BANK MANDIRI vs. Playa Hotels Resorts | BANK MANDIRI vs. ANTA SPORTS PRODUCT | BANK MANDIRI vs. PLAYSTUDIOS A DL 0001 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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