Correlation Between BANK MANDIRI and GBS Software
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and GBS Software 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 GBS Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and GBS Software AG, you can compare the effects of market volatilities on BANK MANDIRI and GBS Software 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 GBS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and GBS Software.
Diversification Opportunities for BANK MANDIRI and GBS Software
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and GBS is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and GBS Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Software AG 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 GBS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Software AG has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and GBS Software go up and down completely randomly.
Pair Corralation between BANK MANDIRI and GBS Software
If you would invest 276.00 in GBS Software AG on November 3, 2024 and sell it today you would earn a total of 2.00 from holding GBS Software AG or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. GBS Software AG
Performance |
| Timeline |
| BANK MANDIRI |
| GBS Software AG |
BANK MANDIRI and GBS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and GBS Software
The main advantage of trading using opposite BANK MANDIRI and GBS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, GBS Software 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 GBS Software will offset losses from the drop in GBS Software's long position.| BANK MANDIRI vs. Air Transport Services | BANK MANDIRI vs. US Physical Therapy | BANK MANDIRI vs. Gaztransport Technigaz SA | BANK MANDIRI vs. SOEDER SPORTFISKE AB |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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