Correlation Between Adtalem Global and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Adtalem Global 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 Adtalem Global and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adtalem Global Education and BANK MANDIRI, you can compare the effects of market volatilities on Adtalem Global 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 Adtalem Global with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and BANK MANDIRI.
Diversification Opportunities for Adtalem Global and BANK MANDIRI
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adtalem and BANK is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Adtalem Global 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 Adtalem Global Education 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 Adtalem Global i.e., Adtalem Global and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Adtalem Global and BANK MANDIRI
Assuming the 90 days trading horizon Adtalem Global Education is expected to generate 0.23 times more return on investment than BANK MANDIRI. However, Adtalem Global Education is 4.3 times less risky than BANK MANDIRI. It trades about 0.2 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.04 per unit of risk. If you would invest 8,450 in Adtalem Global Education on October 12, 2024 and sell it today you would earn a total of 550.00 from holding Adtalem Global Education or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Adtalem Global Education vs. BANK MANDIRI
Performance |
| Timeline |
| Adtalem Global Education |
| BANK MANDIRI |
Adtalem Global and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and BANK MANDIRI
The main advantage of trading using opposite Adtalem Global and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global 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.| Adtalem Global vs. USU Software AG | Adtalem Global vs. Kingdee International Software | Adtalem Global vs. Magic Software Enterprises | Adtalem Global vs. ASURE SOFTWARE |
| BANK MANDIRI vs. CAREER EDUCATION | BANK MANDIRI vs. DeVry Education Group | BANK MANDIRI vs. American Public Education | BANK MANDIRI vs. Adtalem Global Education |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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