Correlation Between BANK MANDIRI and HNI
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and HNI 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 HNI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and HNI Corporation, you can compare the effects of market volatilities on BANK MANDIRI and HNI 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 HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and HNI.
Diversification Opportunities for BANK MANDIRI and HNI
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and HNI is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation 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 HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and HNI go up and down completely randomly.
Pair Corralation between BANK MANDIRI and HNI
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 1.48 times less return on investment than HNI. In addition to that, BANK MANDIRI is 1.28 times more volatile than HNI Corporation. It trades about 0.05 of its total potential returns per unit of risk. HNI Corporation is currently generating about 0.1 per unit of volatility. If you would invest 4,282 in HNI Corporation on August 30, 2024 and sell it today you would earn a total of 968.00 from holding HNI Corporation or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. HNI Corp.
Performance |
| Timeline |
| BANK MANDIRI |
| HNI Corporation |
BANK MANDIRI and HNI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and HNI
The main advantage of trading using opposite BANK MANDIRI and HNI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, HNI 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 HNI will offset losses from the drop in HNI's long position.| BANK MANDIRI vs. The Boston Beer | BANK MANDIRI vs. INVITATION HOMES DL | BANK MANDIRI vs. Corporate Office Properties | BANK MANDIRI vs. AIR PRODCHEMICALS |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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