Correlation Between Northern Data and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Northern Data 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 Northern Data and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Data AG and BANK MANDIRI, you can compare the effects of market volatilities on Northern Data 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 Northern Data with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Data and BANK MANDIRI.
Diversification Opportunities for Northern Data and BANK MANDIRI
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Northern and BANK is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Northern Data AG and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Northern Data 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 Northern Data 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 Northern Data i.e., Northern Data and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Northern Data and BANK MANDIRI
Assuming the 90 days trading horizon Northern Data AG is expected to generate 1.49 times more return on investment than BANK MANDIRI. However, Northern Data is 1.49 times more volatile than BANK MANDIRI. It trades about 0.08 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.02 per unit of risk. If you would invest 697.00 in Northern Data AG on August 27, 2024 and sell it today you would earn a total of 2,803 from holding Northern Data AG or generate 402.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Data AG vs. BANK MANDIRI
Performance |
| Timeline |
| Northern Data AG |
| BANK MANDIRI |
Northern Data and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Data and BANK MANDIRI
The main advantage of trading using opposite Northern Data and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Data 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.| Northern Data vs. BANK MANDIRI | Northern Data vs. PT Bank Mandiri | Northern Data vs. BANK MANDIRI | Northern Data vs. BANK MANDIRI |
| BANK MANDIRI vs. Richardson Electronics | BANK MANDIRI vs. ANTA SPORTS PRODUCT | BANK MANDIRI vs. Nucletron Electronic Aktiengesellschaft | 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |