Correlation Between BANK MANDIRI and Atea ASA
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Atea ASA 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 Atea ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Atea ASA, you can compare the effects of market volatilities on BANK MANDIRI and Atea ASA 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 Atea ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Atea ASA.
Diversification Opportunities for BANK MANDIRI and Atea ASA
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Atea is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Atea ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atea ASA 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 Atea ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atea ASA has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Atea ASA go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Atea ASA
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 1.15 times more return on investment than Atea ASA. However, BANK MANDIRI is 1.15 times more volatile than Atea ASA. It trades about 0.23 of its potential returns per unit of risk. Atea ASA is currently generating about -0.04 per unit of risk. If you would invest 32.00 in BANK MANDIRI on November 2, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Atea ASA
Performance |
| Timeline |
| BANK MANDIRI |
| Atea ASA |
BANK MANDIRI and Atea ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Atea ASA
The main advantage of trading using opposite BANK MANDIRI and Atea ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Atea ASA 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 Atea ASA will offset losses from the drop in Atea ASA's long position.| BANK MANDIRI vs. GEELY AUTOMOBILE | BANK MANDIRI vs. Zoom Video Communications | BANK MANDIRI vs. Casio Computer CoLtd | BANK MANDIRI vs. Align Technology |
| Atea ASA vs. Caseys General Stores | Atea ASA vs. National Retail Properties | Atea ASA vs. Burlington Stores | Atea ASA vs. PICKN PAY STORES |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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