Correlation Between Bank Mandiri and ClearSign Combustion
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and ClearSign Combustion 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 Bank Mandiri and ClearSign Combustion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and ClearSign Combustion, you can compare the effects of market volatilities on Bank Mandiri and ClearSign Combustion 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 Bank Mandiri with a short position of ClearSign Combustion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and ClearSign Combustion.
Diversification Opportunities for Bank Mandiri and ClearSign Combustion
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and ClearSign is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and ClearSign Combustion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearSign Combustion and Bank Mandiri 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 Bank Mandiri Persero are associated (or correlated) with ClearSign Combustion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearSign Combustion has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and ClearSign Combustion go up and down completely randomly.
Pair Corralation between Bank Mandiri and ClearSign Combustion
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 2.71 times more return on investment than ClearSign Combustion. However, Bank Mandiri is 2.71 times more volatile than ClearSign Combustion. It trades about -0.16 of its potential returns per unit of risk. ClearSign Combustion is currently generating about -0.64 per unit of risk. If you would invest 38.00 in Bank Mandiri Persero on November 28, 2024 and sell it today you would lose (12.00) from holding Bank Mandiri Persero or give up 31.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. ClearSign Combustion
Performance |
| Timeline |
| Bank Mandiri Persero |
| ClearSign Combustion |
Bank Mandiri and ClearSign Combustion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and ClearSign Combustion
The main advantage of trading using opposite Bank Mandiri and ClearSign Combustion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, ClearSign Combustion 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 ClearSign Combustion will offset losses from the drop in ClearSign Combustion's long position.| Bank Mandiri vs. HDFC Bank Limited | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. Fifth Third Bancorp |
| ClearSign Combustion vs. Urban One Class | ClearSign Combustion vs. Broadway Financial | ClearSign Combustion vs. Ideal Power | ClearSign Combustion vs. Carver Bancorp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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