Correlation Between BANK MANDIRI and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Bloom Energy 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 BANK MANDIRI and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Bloom Energy, you can compare the effects of market volatilities on BANK MANDIRI and Bloom Energy 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 BANK MANDIRI with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Bloom Energy.
Diversification Opportunities for BANK MANDIRI and Bloom Energy
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Bloom is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and BANK MANDIRI 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 BANK MANDIRI are associated (or correlated) with Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Bloom Energy go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Bloom Energy
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 0.52 times more return on investment than Bloom Energy. However, BANK MANDIRI is 1.91 times less risky than Bloom Energy. It trades about -0.17 of its potential returns per unit of risk. Bloom Energy is currently generating about -0.09 per unit of risk. If you would invest 35.00 in BANK MANDIRI on September 23, 2024 and sell it today you would lose (3.00) from holding BANK MANDIRI or give up 8.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BANK MANDIRI vs. Bloom Energy
Performance |
Timeline |
BANK MANDIRI |
Bloom Energy |
BANK MANDIRI and Bloom Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BANK MANDIRI and Bloom Energy
The main advantage of trading using opposite BANK MANDIRI and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Bloom Energy 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 Bloom Energy will offset losses from the drop in Bloom Energy's long position.BANK MANDIRI vs. CODERE ONLINE LUX | BANK MANDIRI vs. FUTURE GAMING GRP | BANK MANDIRI vs. Salesforce | BANK MANDIRI vs. Carsales |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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