Correlation Between COPLAND ROAD and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD 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 COPLAND ROAD and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPLAND ROAD CAPITAL and BANK MANDIRI, you can compare the effects of market volatilities on COPLAND ROAD 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 COPLAND ROAD with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and BANK MANDIRI.
Diversification Opportunities for COPLAND ROAD and BANK MANDIRI
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COPLAND and BANK is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and COPLAND ROAD 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 COPLAND ROAD CAPITAL 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 COPLAND ROAD i.e., COPLAND ROAD and BANK MANDIRI go up and down completely randomly.
Pair Corralation between COPLAND ROAD and BANK MANDIRI
Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to generate 1.85 times more return on investment than BANK MANDIRI. However, COPLAND ROAD is 1.85 times more volatile than BANK MANDIRI. It trades about 0.14 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.19 per unit of risk. If you would invest 3,840 in COPLAND ROAD CAPITAL on December 28, 2024 and sell it today you would earn a total of 1,220 from holding COPLAND ROAD CAPITAL or generate 31.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
COPLAND ROAD CAPITAL vs. BANK MANDIRI
Performance |
Timeline |
COPLAND ROAD CAPITAL |
BANK MANDIRI |
COPLAND ROAD and BANK MANDIRI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COPLAND ROAD and BANK MANDIRI
The main advantage of trading using opposite COPLAND ROAD and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD 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.COPLAND ROAD vs. CHINA TELECOM H | COPLAND ROAD vs. SmarTone Telecommunications Holdings | COPLAND ROAD vs. SBA Communications Corp | COPLAND ROAD vs. China Communications Services |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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