Correlation Between BANK MANDIRI and ARTEMIS RESOURCES
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and ARTEMIS RESOURCES 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 ARTEMIS RESOURCES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and ARTEMIS RESOURCES, you can compare the effects of market volatilities on BANK MANDIRI and ARTEMIS RESOURCES 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 ARTEMIS RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and ARTEMIS RESOURCES.
Diversification Opportunities for BANK MANDIRI and ARTEMIS RESOURCES
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BANK and ARTEMIS is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and ARTEMIS RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARTEMIS RESOURCES 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 are associated (or correlated) with ARTEMIS RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARTEMIS RESOURCES has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and ARTEMIS RESOURCES go up and down completely randomly.
Pair Corralation between BANK MANDIRI and ARTEMIS RESOURCES
If you would invest 32.00 in BANK MANDIRI on October 25, 2024 and sell it today you would earn a total of 2.00 from holding BANK MANDIRI or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
BANK MANDIRI vs. ARTEMIS RESOURCES
Performance |
| Timeline |
| BANK MANDIRI |
| ARTEMIS RESOURCES |
BANK MANDIRI and ARTEMIS RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and ARTEMIS RESOURCES
The main advantage of trading using opposite BANK MANDIRI and ARTEMIS RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, ARTEMIS RESOURCES 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 ARTEMIS RESOURCES will offset losses from the drop in ARTEMIS RESOURCES's long position.| BANK MANDIRI vs. High Liner Foods | BANK MANDIRI vs. Thai Beverage Public | BANK MANDIRI vs. Columbia Sportswear | BANK MANDIRI vs. PLAYWAY SA ZY 10 |
| ARTEMIS RESOURCES vs. X FAB Silicon Foundries | ARTEMIS RESOURCES vs. DFS Furniture PLC | ARTEMIS RESOURCES vs. Haier Smart Home | ARTEMIS RESOURCES vs. FANDIFI TECHNOLOGY P |
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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