Correlation Between BANK MANDIRI and FABASOFT -
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and FABASOFT - 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 FABASOFT - into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and FABASOFT Dusseldorf, you can compare the effects of market volatilities on BANK MANDIRI and FABASOFT - 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 FABASOFT -. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and FABASOFT -.
Diversification Opportunities for BANK MANDIRI and FABASOFT -
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and FABASOFT is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and FABASOFT Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FABASOFT Dusseldorf 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 FABASOFT -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FABASOFT Dusseldorf has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and FABASOFT - go up and down completely randomly.
Pair Corralation between BANK MANDIRI and FABASOFT -
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the FABASOFT -. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 1.09 times less risky than FABASOFT -. The stock trades about -0.35 of its potential returns per unit of risk. The FABASOFT Dusseldorf is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 1,660 in FABASOFT Dusseldorf on October 17, 2024 and sell it today you would lose (50.00) from holding FABASOFT Dusseldorf or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
BANK MANDIRI vs. FABASOFT Dusseldorf
Performance |
| Timeline |
| BANK MANDIRI |
| FABASOFT Dusseldorf |
BANK MANDIRI and FABASOFT - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and FABASOFT -
The main advantage of trading using opposite BANK MANDIRI and FABASOFT - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, FABASOFT - 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 FABASOFT - will offset losses from the drop in FABASOFT -'s long position.| BANK MANDIRI vs. Comba Telecom Systems | BANK MANDIRI vs. KINGBOARD CHEMICAL | BANK MANDIRI vs. China BlueChemical | BANK MANDIRI vs. SK TELECOM TDADR |
| FABASOFT - vs. SOLSTAD OFFSHORE NK | FABASOFT - vs. SIEM OFFSHORE NEW | FABASOFT - vs. SENECA FOODS A | FABASOFT - vs. Plastic Omnium |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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