Correlation Between BANK MANDIRI and Shionogi
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Shionogi 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 Shionogi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Shionogi Co, you can compare the effects of market volatilities on BANK MANDIRI and Shionogi 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 Shionogi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Shionogi.
Diversification Opportunities for BANK MANDIRI and Shionogi
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Shionogi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Shionogi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shionogi 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 Shionogi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shionogi has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Shionogi go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Shionogi
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 0.74 times more return on investment than Shionogi. However, BANK MANDIRI is 1.36 times less risky than Shionogi. It trades about 0.24 of its potential returns per unit of risk. Shionogi Co is currently generating about 0.13 per unit of risk. If you would invest 32.00 in BANK MANDIRI on October 20, 2024 and sell it today you would earn a total of 1.00 from holding BANK MANDIRI or generate 3.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 94.44% |
Values | Daily Returns |
BANK MANDIRI vs. Shionogi Co
Performance |
Timeline |
BANK MANDIRI |
Shionogi |
BANK MANDIRI and Shionogi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BANK MANDIRI and Shionogi
The main advantage of trading using opposite BANK MANDIRI and Shionogi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Shionogi 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 Shionogi will offset losses from the drop in Shionogi's long position.BANK MANDIRI vs. COMPUTERSHARE | BANK MANDIRI vs. TERADATA | BANK MANDIRI vs. INTERNET INJPADR 1 | BANK MANDIRI vs. China Datang |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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