Correlation Between BANK MANDIRI and ChemoMetec
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and ChemoMetec 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 ChemoMetec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and ChemoMetec AS, you can compare the effects of market volatilities on BANK MANDIRI and ChemoMetec 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 ChemoMetec. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and ChemoMetec.
Diversification Opportunities for BANK MANDIRI and ChemoMetec
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and ChemoMetec is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and ChemoMetec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChemoMetec AS 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 ChemoMetec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChemoMetec AS has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and ChemoMetec go up and down completely randomly.
Pair Corralation between BANK MANDIRI and ChemoMetec
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 0.55 times more return on investment than ChemoMetec. However, BANK MANDIRI is 1.81 times less risky than ChemoMetec. It trades about 0.03 of its potential returns per unit of risk. ChemoMetec AS is currently generating about 0.0 per unit of risk. If you would invest 29.00 in BANK MANDIRI on September 3, 2024 and sell it today you would earn a total of 6.00 from holding BANK MANDIRI or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. ChemoMetec AS
Performance |
| Timeline |
| BANK MANDIRI |
| ChemoMetec AS |
BANK MANDIRI and ChemoMetec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and ChemoMetec
The main advantage of trading using opposite BANK MANDIRI and ChemoMetec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, ChemoMetec 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 ChemoMetec will offset losses from the drop in ChemoMetec's long position.| BANK MANDIRI vs. Natural Health Trends | BANK MANDIRI vs. Ramsay Health Care | BANK MANDIRI vs. Western Copper and | BANK MANDIRI vs. Zijin Mining Group |
| ChemoMetec vs. United Utilities Group | ChemoMetec vs. Universal Entertainment | ChemoMetec vs. Universal Insurance Holdings | ChemoMetec vs. AIR PRODCHEMICALS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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