Correlation Between Air Transport and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Air Transport 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 Air Transport and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and BANK MANDIRI, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and BANK MANDIRI.
Diversification Opportunities for Air Transport and BANK MANDIRI
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and BANK is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Air Transport 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 Air Transport Services 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 Air Transport i.e., Air Transport and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Air Transport and BANK MANDIRI
Assuming the 90 days horizon Air Transport Services is expected to generate 0.33 times more return on investment than BANK MANDIRI. However, Air Transport Services is 3.01 times less risky than BANK MANDIRI. It trades about -0.07 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.19 per unit of risk. If you would invest 2,100 in Air Transport Services on December 26, 2024 and sell it today you would lose (60.00) from holding Air Transport Services or give up 2.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Air Transport Services vs. BANK MANDIRI
Performance |
Timeline |
Air Transport Services |
BANK MANDIRI |
Air Transport and BANK MANDIRI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Transport and BANK MANDIRI
The main advantage of trading using opposite Air Transport and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.Air Transport vs. SOUTHWEST AIRLINES | Air Transport vs. Southwest Airlines Co | Air Transport vs. Data3 Limited | Air Transport vs. DATALOGIC |
BANK MANDIRI vs. Geely Automobile Holdings | BANK MANDIRI vs. CarsalesCom | BANK MANDIRI vs. Motorcar Parts of | BANK MANDIRI vs. Luckin Coffee |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |