Correlation Between BANK MANDIRI and Genfit SA
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Genfit SA 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 Genfit SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Genfit SA, you can compare the effects of market volatilities on BANK MANDIRI and Genfit SA 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 Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Genfit SA.
Diversification Opportunities for BANK MANDIRI and Genfit SA
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BANK and Genfit is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA 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 Genfit SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit SA has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Genfit SA go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Genfit SA
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Genfit SA. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 1.07 times less risky than Genfit SA. The stock trades about -0.26 of its potential returns per unit of risk. The Genfit SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Genfit SA on December 11, 2024 and sell it today you would lose (15.00) from holding Genfit SA or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Genfit SA
Performance |
| Timeline |
| BANK MANDIRI |
| Genfit SA |
BANK MANDIRI and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Genfit SA
The main advantage of trading using opposite BANK MANDIRI and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Genfit SA 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 Genfit SA will offset losses from the drop in Genfit SA's long position.| BANK MANDIRI vs. Scottish Mortgage Investment | BANK MANDIRI vs. AGNC INVESTMENT | BANK MANDIRI vs. Keck Seng Investments | BANK MANDIRI vs. PennantPark Investment |
| Genfit SA vs. MARKET VECTR RETAIL | Genfit SA vs. INTERSHOP Communications Aktiengesellschaft | Genfit SA vs. Wayside Technology Group | Genfit SA vs. Computershare 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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