Correlation Between MAGNUM MINING and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING 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 MAGNUM MINING and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGNUM MINING EXP and BANK MANDIRI, you can compare the effects of market volatilities on MAGNUM MINING 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 MAGNUM MINING with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and BANK MANDIRI.
Diversification Opportunities for MAGNUM MINING and BANK MANDIRI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and BANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and MAGNUM MINING 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 MAGNUM MINING EXP 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 MAGNUM MINING i.e., MAGNUM MINING and BANK MANDIRI go up and down completely randomly.
Pair Corralation between MAGNUM MINING and BANK MANDIRI
If you would invest 33.00 in BANK MANDIRI on October 16, 2024 and sell it today you would lose (1.00) from holding BANK MANDIRI or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. BANK MANDIRI
Performance |
| Timeline |
| MAGNUM MINING EXP |
| BANK MANDIRI |
MAGNUM MINING and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and BANK MANDIRI
The main advantage of trading using opposite MAGNUM MINING and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING 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.| MAGNUM MINING vs. Singapore Telecommunications Limited | MAGNUM MINING vs. Citic Telecom International | MAGNUM MINING vs. Apollo Investment Corp | MAGNUM MINING vs. CITIC Telecom International |
| BANK MANDIRI vs. Zijin Mining Group | BANK MANDIRI vs. MAGNUM MINING EXP | BANK MANDIRI vs. DETALION GAMES SA | BANK MANDIRI vs. FRACTAL GAMING GROUP |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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