Correlation Between SPORTING and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both SPORTING 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 SPORTING and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPORTING and BANK MANDIRI, you can compare the effects of market volatilities on SPORTING 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 SPORTING with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPORTING and BANK MANDIRI.
Diversification Opportunities for SPORTING and BANK MANDIRI
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPORTING and BANK is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and SPORTING 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 SPORTING 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 SPORTING i.e., SPORTING and BANK MANDIRI go up and down completely randomly.
Pair Corralation between SPORTING and BANK MANDIRI
Assuming the 90 days trading horizon SPORTING is expected to generate 1.31 times less return on investment than BANK MANDIRI. But when comparing it to its historical volatility, SPORTING is 1.38 times less risky than BANK MANDIRI. It trades about 0.03 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 30.00 in BANK MANDIRI on September 4, 2024 and sell it today you would earn a total of 2.00 from holding BANK MANDIRI or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPORTING vs. BANK MANDIRI
Performance |
| Timeline |
| SPORTING |
| BANK MANDIRI |
SPORTING and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPORTING and BANK MANDIRI
The main advantage of trading using opposite SPORTING and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORTING 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.| SPORTING vs. Ultra Clean Holdings | SPORTING vs. Gol Intelligent Airlines | SPORTING vs. Southwest Airlines Co | SPORTING vs. Dairy Farm International |
| BANK MANDIRI vs. TITANIUM TRANSPORTGROUP | BANK MANDIRI vs. SPORTING | BANK MANDIRI vs. SPORT LISBOA E | BANK MANDIRI vs. PARKEN Sport Entertainment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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