Correlation Between TSOGO SUN and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and BANK MANDIRI, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and BANK MANDIRI.
Diversification Opportunities for TSOGO SUN and BANK MANDIRI
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TSOGO and BANK is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and BANK MANDIRI go up and down completely randomly.
Pair Corralation between TSOGO SUN and BANK MANDIRI
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 2.25 times more return on investment than BANK MANDIRI. However, TSOGO SUN is 2.25 times more volatile than BANK MANDIRI. It trades about 0.07 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.02 per unit of risk. If you would invest 29.00 in TSOGO SUN GAMING on August 27, 2024 and sell it today you would earn a total of 31.00 from holding TSOGO SUN GAMING or generate 106.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. BANK MANDIRI
Performance |
| Timeline |
| TSOGO SUN GAMING |
| BANK MANDIRI |
TSOGO SUN and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and BANK MANDIRI
The main advantage of trading using opposite TSOGO SUN and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB |
| BANK MANDIRI vs. OURGAME INTHOLDL 00005 | BANK MANDIRI vs. TSOGO SUN GAMING | BANK MANDIRI vs. Penn National Gaming | BANK MANDIRI vs. Samsung Electronics Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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