Correlation Between GLOBUS MEDICAL and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL 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 GLOBUS MEDICAL and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and BANK MANDIRI, you can compare the effects of market volatilities on GLOBUS MEDICAL 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 GLOBUS MEDICAL with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL and BANK MANDIRI.
Diversification Opportunities for GLOBUS MEDICAL and BANK MANDIRI
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLOBUS and BANK is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and GLOBUS MEDICAL 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 GLOBUS MEDICAL A 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 GLOBUS MEDICAL i.e., GLOBUS MEDICAL and BANK MANDIRI go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL and BANK MANDIRI
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 0.6 times more return on investment than BANK MANDIRI. However, GLOBUS MEDICAL A is 1.68 times less risky than BANK MANDIRI. It trades about 0.16 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.09 per unit of risk. If you would invest 8,000 in GLOBUS MEDICAL A on October 28, 2024 and sell it today you would earn a total of 800.00 from holding GLOBUS MEDICAL A or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. BANK MANDIRI
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| BANK MANDIRI |
GLOBUS MEDICAL and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL and BANK MANDIRI
The main advantage of trading using opposite GLOBUS MEDICAL and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL 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.| GLOBUS MEDICAL vs. DeVry Education Group | GLOBUS MEDICAL vs. CARSALESCOM | GLOBUS MEDICAL vs. Chesapeake Utilities | GLOBUS MEDICAL vs. G8 EDUCATION |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |