Correlation Between BANK MANDIRI and Spacetalk
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Spacetalk 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 Spacetalk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Spacetalk, you can compare the effects of market volatilities on BANK MANDIRI and Spacetalk 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 Spacetalk. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Spacetalk.
Diversification Opportunities for BANK MANDIRI and Spacetalk
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Spacetalk is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Spacetalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spacetalk 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 Spacetalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spacetalk has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Spacetalk go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Spacetalk
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Spacetalk. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 1.43 times less risky than Spacetalk. The stock trades about -0.01 of its potential returns per unit of risk. The Spacetalk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9.90 in Spacetalk on November 8, 2024 and sell it today you would lose (0.10) from holding Spacetalk or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Spacetalk
Performance |
| Timeline |
| BANK MANDIRI |
| Spacetalk |
BANK MANDIRI and Spacetalk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Spacetalk
The main advantage of trading using opposite BANK MANDIRI and Spacetalk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Spacetalk 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 Spacetalk will offset losses from the drop in Spacetalk's long position.| BANK MANDIRI vs. ecotel communication ag | BANK MANDIRI vs. SOUTHWEST AIRLINES | BANK MANDIRI vs. T MOBILE INCDL 00001 | BANK MANDIRI vs. Singapore Airlines Limited |
| Spacetalk vs. Commonwealth Bank of | Spacetalk vs. UNIQA INSURANCE GR | Spacetalk vs. CODERE ONLINE LUX | Spacetalk vs. Gruppo Mutuionline SpA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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