Correlation Between BANK MANDIRI and Halliburton
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Halliburton 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 Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Halliburton, you can compare the effects of market volatilities on BANK MANDIRI and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Halliburton.
Diversification Opportunities for BANK MANDIRI and Halliburton
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Halliburton is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Halliburton go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Halliburton
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Halliburton. But the stock apears to be less risky and, when comparing its historical volatility, BANK MANDIRI is 1.02 times less risky than Halliburton. The stock trades about -0.08 of its potential returns per unit of risk. The Halliburton is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,562 in Halliburton on August 29, 2024 and sell it today you would earn a total of 471.00 from holding Halliburton or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Halliburton
Performance |
| Timeline |
| BANK MANDIRI |
| Halliburton |
BANK MANDIRI and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Halliburton
The main advantage of trading using opposite BANK MANDIRI and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| BANK MANDIRI vs. Fast Retailing Co | BANK MANDIRI vs. Vastned Retail NV | BANK MANDIRI vs. Globe Trade Centre | BANK MANDIRI vs. United Breweries Co |
| Halliburton vs. Public Storage | Halliburton vs. Pure Storage | Halliburton vs. Hyrican Informationssysteme Aktiengesellschaft | Halliburton vs. DOCDATA |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |