Correlation Between BANK MANDIRI and Halma Plc
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Halma Plc 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 Halma Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Halma plc, you can compare the effects of market volatilities on BANK MANDIRI and Halma Plc 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 Halma Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Halma Plc.
Diversification Opportunities for BANK MANDIRI and Halma Plc
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Halma is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Halma plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halma plc 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 Halma Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halma plc has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Halma Plc go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Halma Plc
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 4.7 times less return on investment than Halma Plc. In addition to that, BANK MANDIRI is 1.3 times more volatile than Halma plc. It trades about 0.01 of its total potential returns per unit of risk. Halma plc is currently generating about 0.05 per unit of volatility. If you would invest 2,627 in Halma plc on October 16, 2024 and sell it today you would earn a total of 581.00 from holding Halma plc or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
BANK MANDIRI vs. Halma plc
Performance |
| Timeline |
| BANK MANDIRI |
| Halma plc |
BANK MANDIRI and Halma Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Halma Plc
The main advantage of trading using opposite BANK MANDIRI and Halma Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Halma Plc 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 Halma Plc will offset losses from the drop in Halma Plc's long position.| BANK MANDIRI vs. SIDETRADE EO 1 | BANK MANDIRI vs. Chesapeake Utilities | BANK MANDIRI vs. Aegean Airlines SA | BANK MANDIRI vs. Singapore Airlines Limited |
| Halma Plc vs. SIERRA METALS | Halma Plc vs. Unity Software | Halma Plc vs. Alfa Financial Software | Halma Plc vs. Yuexiu Transport Infrastructure |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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