Correlation Between BANK MANDIRI and T.J. Maxx
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and T.J. Maxx 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 T.J. Maxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and The TJX Companies, you can compare the effects of market volatilities on BANK MANDIRI and T.J. Maxx 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 T.J. Maxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and T.J. Maxx.
Diversification Opportunities for BANK MANDIRI and T.J. Maxx
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and T.J. is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and The TJX Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJX Companies 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 T.J. Maxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJX Companies has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and T.J. Maxx go up and down completely randomly.
Pair Corralation between BANK MANDIRI and T.J. Maxx
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the T.J. Maxx. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 1.19 times less risky than T.J. Maxx. The stock trades about -0.24 of its potential returns per unit of risk. The The TJX Companies is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 10,452 in The TJX Companies on August 30, 2024 and sell it today you would earn a total of 1,558 from holding The TJX Companies or generate 14.91% 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. The TJX Companies
Performance |
| Timeline |
| BANK MANDIRI |
| TJX Companies |
BANK MANDIRI and T.J. Maxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and T.J. Maxx
The main advantage of trading using opposite BANK MANDIRI and T.J. Maxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, T.J. Maxx 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 T.J. Maxx will offset losses from the drop in T.J. Maxx's long position.| BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Superior Plus Corp | BANK MANDIRI vs. SIVERS SEMICONDUCTORS AB |
| T.J. Maxx vs. NEXT plc | T.J. Maxx vs. The Gap | T.J. Maxx vs. American Eagle Outfitters | T.J. Maxx 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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