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
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Bloom is -0.72. 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 under-perform the Bloom Energy. In addition to that, BANK MANDIRI is 1.67 times more volatile than Bloom Energy. It trades about -0.06 of its total potential returns per unit of risk. Bloom Energy is currently generating about -0.05 per unit of volatility. If you would invest 2,546 in Bloom Energy on October 10, 2024 and sell it today you would lose (157.00) from holding Bloom Energy or give up 6.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 94.44% |
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. USU Software AG | BANK MANDIRI vs. CPU SOFTWAREHOUSE | BANK MANDIRI vs. Easy Software AG | BANK MANDIRI vs. ASURE SOFTWARE |
Bloom Energy vs. Inspire Medical Systems | Bloom Energy vs. IMAGIN MEDICAL INC | Bloom Energy vs. Elmos Semiconductor SE | Bloom Energy vs. Diamyd Medical AB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |