Correlation Between Nexstar Media and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Nexstar Media 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 Nexstar Media and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Media Group and BANK MANDIRI, you can compare the effects of market volatilities on Nexstar Media 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 Nexstar Media with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and BANK MANDIRI.
Diversification Opportunities for Nexstar Media and BANK MANDIRI
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nexstar and BANK is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Nexstar Media 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 Nexstar Media Group 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 Nexstar Media i.e., Nexstar Media and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Nexstar Media and BANK MANDIRI
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the BANK MANDIRI. But the stock apears to be less risky and, when comparing its historical volatility, Nexstar Media Group is 2.53 times less risky than BANK MANDIRI. The stock trades about -0.07 of its potential returns per unit of risk. The BANK MANDIRI is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 30.00 in BANK MANDIRI on November 7, 2024 and sell it today you would earn a total of 2.00 from holding BANK MANDIRI or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. BANK MANDIRI
Performance |
| Timeline |
| Nexstar Media Group |
| BANK MANDIRI |
Nexstar Media and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and BANK MANDIRI
The main advantage of trading using opposite Nexstar Media and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media 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.| Nexstar Media vs. US Physical Therapy | Nexstar Media vs. British American Tobacco | Nexstar Media vs. United Breweries Co | Nexstar Media vs. Cleanaway Waste Management |
| BANK MANDIRI vs. Discover Financial Services | BANK MANDIRI vs. Zijin Mining Group | BANK MANDIRI vs. Jacquet Metal Service | BANK MANDIRI vs. SUN LIFE FINANCIAL |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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