Correlation Between Ramsay Health and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Ramsay Health and BANK MANDIRI 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 Ramsay Health and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Health Care and BANK MANDIRI, you can compare the effects of market volatilities on Ramsay Health and BANK MANDIRI 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 Ramsay Health with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and BANK MANDIRI.
Diversification Opportunities for Ramsay Health and BANK MANDIRI
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ramsay and BANK is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Ramsay Health 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 Ramsay Health Care are associated (or correlated) with BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of Ramsay Health i.e., Ramsay Health and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Ramsay Health and BANK MANDIRI
Assuming the 90 days horizon Ramsay Health Care is expected to under-perform the BANK MANDIRI. But the stock apears to be less risky and, when comparing its historical volatility, Ramsay Health Care is 1.64 times less risky than BANK MANDIRI. The stock trades about -0.04 of its potential returns per unit of risk. The BANK MANDIRI is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 33.00 in BANK MANDIRI on September 3, 2024 and sell it today you would earn a total of 2.00 from holding BANK MANDIRI or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Health Care vs. BANK MANDIRI
Performance |
| Timeline |
| Ramsay Health Care |
| BANK MANDIRI |
Ramsay Health and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and BANK MANDIRI
The main advantage of trading using opposite Ramsay Health and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| Ramsay Health vs. Superior Plus Corp | Ramsay Health vs. NMI Holdings | Ramsay Health vs. Origin Agritech | Ramsay Health vs. SIVERS SEMICONDUCTORS AB |
| BANK MANDIRI vs. Natural Health Trends | BANK MANDIRI vs. Ramsay Health Care | BANK MANDIRI vs. Western Copper and | BANK MANDIRI vs. Zijin Mining Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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