Correlation Between BANK MANDIRI and AdvanSix
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and AdvanSix 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 AdvanSix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and AdvanSix, you can compare the effects of market volatilities on BANK MANDIRI and AdvanSix 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 AdvanSix. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and AdvanSix.
Diversification Opportunities for BANK MANDIRI and AdvanSix
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and AdvanSix is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and AdvanSix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvanSix 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 AdvanSix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvanSix has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and AdvanSix go up and down completely randomly.
Pair Corralation between BANK MANDIRI and AdvanSix
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 3.92 times less return on investment than AdvanSix. In addition to that, BANK MANDIRI is 1.38 times more volatile than AdvanSix. It trades about 0.01 of its total potential returns per unit of risk. AdvanSix is currently generating about 0.07 per unit of volatility. If you would invest 2,880 in AdvanSix on September 13, 2024 and sell it today you would earn a total of 80.00 from holding AdvanSix or generate 2.78% 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. AdvanSix
Performance |
| Timeline |
| BANK MANDIRI |
| AdvanSix |
BANK MANDIRI and AdvanSix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and AdvanSix
The main advantage of trading using opposite BANK MANDIRI and AdvanSix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, AdvanSix 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 AdvanSix will offset losses from the drop in AdvanSix's long position.| BANK MANDIRI vs. ePlay Digital | BANK MANDIRI vs. Ryanair Holdings plc | BANK MANDIRI vs. PLAYMATES TOYS | BANK MANDIRI vs. ANTA SPORTS PRODUCT |
| AdvanSix vs. AGF Management Limited | AdvanSix vs. Platinum Investment Management | AdvanSix vs. MARKET VECTR RETAIL | AdvanSix vs. Ross Stores |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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