Correlation Between BANK MANDIRI and Halliburton
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Halliburton 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 Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Halliburton, you can compare the effects of market volatilities on BANK MANDIRI and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Halliburton.
Diversification Opportunities for BANK MANDIRI and Halliburton
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Halliburton is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Halliburton go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Halliburton
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 1.08 times more return on investment than Halliburton. However, BANK MANDIRI is 1.08 times more volatile than Halliburton. It trades about 0.03 of its potential returns per unit of risk. Halliburton is currently generating about 0.01 per unit of risk. If you would invest 33.00 in BANK MANDIRI on August 31, 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 | 95.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Halliburton
Performance |
| Timeline |
| BANK MANDIRI |
| Halliburton |
BANK MANDIRI and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Halliburton
The main advantage of trading using opposite BANK MANDIRI and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| BANK MANDIRI vs. SIVERS SEMICONDUCTORS AB | BANK MANDIRI vs. Darden Restaurants | BANK MANDIRI vs. Reliance Steel Aluminum | BANK MANDIRI vs. Q2M Managementberatung AG |
| Halliburton vs. Schlumberger Limited | Halliburton vs. Halliburton | Halliburton vs. Tenaris SA | Halliburton vs. Superior Plus Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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