Correlation Between BANK MANDIRI and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and SENECA FOODS-A 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 SENECA FOODS-A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and SENECA FOODS A, you can compare the effects of market volatilities on BANK MANDIRI and SENECA FOODS-A 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 SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and SENECA FOODS-A.
Diversification Opportunities for BANK MANDIRI and SENECA FOODS-A
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and SENECA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A 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 SENECA FOODS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between BANK MANDIRI and SENECA FOODS-A
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the SENECA FOODS-A. In addition to that, BANK MANDIRI is 1.04 times more volatile than SENECA FOODS A. It trades about -0.21 of its total potential returns per unit of risk. SENECA FOODS A is currently generating about 0.28 per unit of volatility. If you would invest 5,500 in SENECA FOODS A on August 24, 2024 and sell it today you would earn a total of 900.00 from holding SENECA FOODS A or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANK MANDIRI vs. SENECA FOODS A
Performance |
| Timeline |
| BANK MANDIRI |
| SENECA FOODS A |
BANK MANDIRI and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and SENECA FOODS-A
The main advantage of trading using opposite BANK MANDIRI and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, SENECA FOODS-A 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 SENECA FOODS-A will offset losses from the drop in SENECA FOODS-A's long position.| BANK MANDIRI vs. Ribbon Communications | BANK MANDIRI vs. Charter Communications | BANK MANDIRI vs. INTERSHOP Communications Aktiengesellschaft | BANK MANDIRI vs. SINGAPORE AIRLINES |
| SENECA FOODS-A vs. Chunghwa Telecom Co | SENECA FOODS-A vs. ScanSource | SENECA FOODS-A vs. Coor Service Management | SENECA FOODS-A vs. Cogent Communications Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |