Correlation Between BANK MANDIRI and Qyou Media
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Qyou Media 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 Qyou Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Qyou Media, you can compare the effects of market volatilities on BANK MANDIRI and Qyou Media 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 Qyou Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Qyou Media.
Diversification Opportunities for BANK MANDIRI and Qyou Media
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Qyou is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Qyou Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qyou Media 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 Qyou Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qyou Media has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Qyou Media go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Qyou Media
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Qyou Media. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 9.84 times less risky than Qyou Media. The stock trades about -0.14 of its potential returns per unit of risk. The Qyou Media is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.56 in Qyou Media on September 20, 2024 and sell it today you would earn a total of 0.14 from holding Qyou Media or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Qyou Media
Performance |
| Timeline |
| BANK MANDIRI |
| Qyou Media |
BANK MANDIRI and Qyou Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Qyou Media
The main advantage of trading using opposite BANK MANDIRI and Qyou Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Qyou Media 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 Qyou Media will offset losses from the drop in Qyou Media's long position.| BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Microsoft |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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