Correlation Between BANK MANDIRI and CASIO COMPUTER
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 97.5% |
Values | Daily Returns |
BANK MANDIRI vs. CASIO PUTER
Performance |
Timeline |
BANK MANDIRI |
CASIO COMPUTER |
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.BANK MANDIRI vs. Advanced Medical Solutions | BANK MANDIRI vs. PEPTONIC MEDICAL | BANK MANDIRI vs. Goosehead Insurance | BANK MANDIRI vs. QBE Insurance Group |
CASIO COMPUTER vs. Tradegate AG Wertpapierhandelsbank | CASIO COMPUTER vs. Broadcom | CASIO COMPUTER vs. CARSALESCOM | CASIO COMPUTER vs. CANON MARKETING JP |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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