Correlation Between BANK MANDIRI and Bill Holdings
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Bill Holdings 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 Bill Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Bill Holdings, you can compare the effects of market volatilities on BANK MANDIRI and Bill Holdings 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 Bill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Bill Holdings.
Diversification Opportunities for BANK MANDIRI and Bill Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Bill is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Bill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Holdings 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 Bill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Holdings has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Bill Holdings go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Bill Holdings
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 0.56 times more return on investment than Bill Holdings. However, BANK MANDIRI is 1.78 times less risky than Bill Holdings. It trades about 0.03 of its potential returns per unit of risk. Bill Holdings is currently generating about 0.0 per unit of risk. If you would invest 33.00 in BANK MANDIRI on September 2, 2024 and sell it today you would earn a total of 6.00 from holding BANK MANDIRI or generate 18.18% 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. Bill Holdings
Performance |
| Timeline |
| BANK MANDIRI |
| Bill Holdings |
BANK MANDIRI and Bill Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Bill Holdings
The main advantage of trading using opposite BANK MANDIRI and Bill Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Bill Holdings 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 Bill Holdings will offset losses from the drop in Bill Holdings' long position.| BANK MANDIRI vs. VARIOUS EATERIES LS | BANK MANDIRI vs. MIRAMAR HOTEL INV | BANK MANDIRI vs. Meli Hotels International | BANK MANDIRI vs. Summit Hotel Properties |
| Bill Holdings vs. Aluminum of | Bill Holdings vs. EHEALTH | Bill Holdings vs. Bausch Health Companies | Bill Holdings vs. YOOMA WELLNESS INC |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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