Correlation Between MOBILE FACTORY and BANK MANDIRI

Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY 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 MOBILE FACTORY and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MOBILE FACTORY INC and BANK MANDIRI, you can compare the effects of market volatilities on MOBILE FACTORY 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 MOBILE FACTORY with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and BANK MANDIRI.

Diversification Opportunities for MOBILE FACTORY and BANK MANDIRI

-0.29

Correlation Coefficient

MOBILE FACTORY  BANK MANDIRI

Very good diversification

The 3 months correlation between MOBILE and BANK is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and MOBILE FACTORY 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 MOBILE FACTORY INC 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 MOBILE FACTORY i.e., MOBILE FACTORY and BANK MANDIRI go up and down completely randomly.

Pair Corralation between MOBILE FACTORY and BANK MANDIRI

Assuming the 90 days horizon MOBILE FACTORY INC is expected to under-perform the BANK MANDIRI. But the stock apears to be less risky and, when comparing its historical volatility, MOBILE FACTORY INC is 1.05 times less risky than BANK MANDIRI. The stock trades about 0.0 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  30.00  in BANK MANDIRI on October 25, 2024 and sell it today you would earn a total of  4.00  from holding BANK MANDIRI or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MOBILE FACTORY INC  vs.  BANK MANDIRI

MOBILE FACTORY INC

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MOBILE FACTORY INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MOBILE FACTORY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

BANK MANDIRI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BANK MANDIRI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with MOBILE FACTORY and BANK MANDIRI

The main advantage of trading using opposite MOBILE FACTORY and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY 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.

The idea behind MOBILE FACTORY INC and BANK MANDIRI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.