Correlation Between BANK MANDIRI and CASIO COMPUTER

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Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and CASIO COMPUTER 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 CASIO COMPUTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and CASIO PUTER, you can compare the effects of market volatilities on BANK MANDIRI and CASIO COMPUTER 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 CASIO COMPUTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and CASIO COMPUTER.

Diversification Opportunities for BANK MANDIRI and CASIO COMPUTER

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BANK and CASIO is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and CASIO PUTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CASIO COMPUTER 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 CASIO COMPUTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CASIO COMPUTER has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and CASIO COMPUTER go up and down completely randomly.

Pair Corralation between BANK MANDIRI and CASIO COMPUTER

Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the CASIO COMPUTER. In addition to that, BANK MANDIRI is 1.78 times more volatile than CASIO PUTER. It trades about -0.15 of its total potential returns per unit of risk. CASIO PUTER is currently generating about 0.3 per unit of volatility. If you would invest  663.00  in CASIO PUTER on October 6, 2024 and sell it today you would earn a total of  137.00  from holding CASIO PUTER or generate 20.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy97.5%
ValuesDaily Returns

BANK MANDIRI  vs.  CASIO PUTER

 Performance 
       Timeline  
BANK MANDIRI 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
CASIO COMPUTER 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in CASIO PUTER are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CASIO COMPUTER may actually be approaching a critical reversion point that can send shares even higher in February 2025.

BANK MANDIRI and CASIO COMPUTER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BANK MANDIRI and CASIO COMPUTER

The main advantage of trading using opposite BANK MANDIRI and CASIO COMPUTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, CASIO COMPUTER 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 CASIO COMPUTER will offset losses from the drop in CASIO COMPUTER's long position.
The idea behind BANK MANDIRI and CASIO PUTER 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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