Correlation Between Carsales and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Carsales 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 Carsales and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarsalesCom and BANK MANDIRI, you can compare the effects of market volatilities on Carsales 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 Carsales with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carsales and BANK MANDIRI.
Diversification Opportunities for Carsales and BANK MANDIRI
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carsales and BANK is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding CarsalesCom and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Carsales 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 CarsalesCom 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 Carsales i.e., Carsales and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Carsales and BANK MANDIRI
Assuming the 90 days horizon CarsalesCom is expected to generate 0.76 times more return on investment than BANK MANDIRI. However, CarsalesCom is 1.31 times less risky than BANK MANDIRI. It trades about 0.08 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.03 per unit of risk. If you would invest 1,310 in CarsalesCom on October 16, 2024 and sell it today you would earn a total of 1,010 from holding CarsalesCom or generate 77.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CarsalesCom vs. BANK MANDIRI
Performance |
| Timeline |
| CarsalesCom |
| BANK MANDIRI |
Carsales and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carsales and BANK MANDIRI
The main advantage of trading using opposite Carsales and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carsales 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.| Carsales vs. JIAHUA STORES | Carsales vs. DEVRY EDUCATION GRP | Carsales vs. Adtalem Global Education | Carsales vs. AEON STORES |
| BANK MANDIRI vs. Chesapeake Utilities | BANK MANDIRI vs. OURGAME INTHOLDL 00005 | BANK MANDIRI vs. SEI INVESTMENTS | BANK MANDIRI vs. DETALION GAMES SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |