Correlation Between BANK MANDIRI and Stryker
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Stryker 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 Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Stryker, you can compare the effects of market volatilities on BANK MANDIRI and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Stryker.
Diversification Opportunities for BANK MANDIRI and Stryker
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Stryker is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Stryker go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Stryker
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Stryker. In addition to that, BANK MANDIRI is 1.54 times more volatile than Stryker. It trades about -0.16 of its total potential returns per unit of risk. Stryker is currently generating about 0.22 per unit of volatility. If you would invest 33,490 in Stryker on August 25, 2024 and sell it today you would earn a total of 3,090 from holding Stryker or generate 9.23% 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. Stryker
Performance |
| Timeline |
| BANK MANDIRI |
| Stryker |
BANK MANDIRI and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Stryker
The main advantage of trading using opposite BANK MANDIRI and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.| BANK MANDIRI vs. Ribbon Communications | BANK MANDIRI vs. Charter Communications | BANK MANDIRI vs. INTERSHOP Communications Aktiengesellschaft | BANK MANDIRI vs. SINGAPORE AIRLINES |
| Stryker vs. WESTLAKE CHEMICAL | Stryker vs. Ubisoft Entertainment SA | Stryker vs. Mitsubishi Gas Chemical | Stryker vs. XLMedia PLC |
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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