Correlation Between BANK MANDIRI and Fuji Media
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Fuji 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 Fuji 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 Fuji Media Holdings, you can compare the effects of market volatilities on BANK MANDIRI and Fuji 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Fuji Media.
Diversification Opportunities for BANK MANDIRI and Fuji Media
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Fuji is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Fuji Media go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Fuji Media
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 2.26 times more return on investment than Fuji Media. However, BANK MANDIRI is 2.26 times more volatile than Fuji Media Holdings. It trades about 0.02 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about 0.04 per unit of risk. If you would invest 28.00 in BANK MANDIRI on October 12, 2024 and sell it today you would earn a total of 2.00 from holding BANK MANDIRI or generate 7.14% 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. Fuji Media Holdings
Performance |
| Timeline |
| BANK MANDIRI |
| Fuji Media Holdings |
BANK MANDIRI and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Fuji Media
The main advantage of trading using opposite BANK MANDIRI and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Fuji 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| BANK MANDIRI vs. CAREER EDUCATION | BANK MANDIRI vs. DeVry Education Group | BANK MANDIRI vs. American Public Education | BANK MANDIRI vs. Adtalem Global Education |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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