Correlation Between INFORMATION SVC and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both INFORMATION SVC 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 INFORMATION SVC and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INFORMATION SVC GRP and BANK MANDIRI, you can compare the effects of market volatilities on INFORMATION SVC 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 INFORMATION SVC with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFORMATION SVC and BANK MANDIRI.
Diversification Opportunities for INFORMATION SVC and BANK MANDIRI
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between INFORMATION and BANK is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding INFORMATION SVC GRP and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and INFORMATION SVC 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 INFORMATION SVC GRP 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 INFORMATION SVC i.e., INFORMATION SVC and BANK MANDIRI go up and down completely randomly.
Pair Corralation between INFORMATION SVC and BANK MANDIRI
If you would invest 320.00 in INFORMATION SVC GRP on November 7, 2024 and sell it today you would lose (2.00) from holding INFORMATION SVC GRP or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFORMATION SVC GRP vs. BANK MANDIRI
Performance |
| Timeline |
| INFORMATION SVC GRP |
| BANK MANDIRI |
INFORMATION SVC and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFORMATION SVC and BANK MANDIRI
The main advantage of trading using opposite INFORMATION SVC and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFORMATION SVC 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.| INFORMATION SVC vs. Goosehead Insurance | INFORMATION SVC vs. REVO INSURANCE SPA | INFORMATION SVC vs. SBI Insurance Group | INFORMATION SVC vs. UNIQA INSURANCE GR |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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