Correlation Between BANK MANDIRI and Sands China
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Sands China 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 Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Sands China, you can compare the effects of market volatilities on BANK MANDIRI and Sands China 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 Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Sands China.
Diversification Opportunities for BANK MANDIRI and Sands China
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Sands is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China 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 Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Sands China go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Sands China
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 1.54 times more return on investment than Sands China. However, BANK MANDIRI is 1.54 times more volatile than Sands China. It trades about 0.01 of its potential returns per unit of risk. Sands China is currently generating about -0.54 per unit of risk. If you would invest 35.00 in BANK MANDIRI on October 20, 2024 and sell it today you would earn a total of 0.00 from holding BANK MANDIRI or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
BANK MANDIRI vs. Sands China
Performance |
| Timeline |
| BANK MANDIRI |
| Sands China |
BANK MANDIRI and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Sands China
The main advantage of trading using opposite BANK MANDIRI and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's long position.| BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc |
| Sands China vs. Las Vegas Sands | Sands China vs. Galaxy Entertainment Group | Sands China vs. MGM Resorts International | Sands China vs. Wynn Resorts Limited |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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