Correlation Between BANK MANDIRI and CITIC SECURITIES-H-

Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and CITIC SECURITIES-H- 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 CITIC SECURITIES-H- into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BANK MANDIRI and CITIC SECURITIES H , you can compare the effects of market volatilities on BANK MANDIRI and CITIC SECURITIES-H- 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 CITIC SECURITIES-H-. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and CITIC SECURITIES-H-.

Diversification Opportunities for BANK MANDIRI and CITIC SECURITIES-H-

-0.36

Correlation Coefficient

BANK MANDIRI  CITIC SECURITIES-H-

Very good diversification

The 3 months correlation between BANK and CITIC is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and CITIC SECURITIES H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC SECURITIES-H- 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 CITIC SECURITIES-H-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC SECURITIES-H- has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and CITIC SECURITIES-H- go up and down completely randomly.

Pair Corralation between BANK MANDIRI and CITIC SECURITIES-H-

Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the CITIC SECURITIES-H-. In addition to that, BANK MANDIRI is 3.08 times more volatile than CITIC SECURITIES H . It trades about -0.06 of its total potential returns per unit of risk. CITIC SECURITIES H is currently generating about 0.01 per unit of volatility. If you would invest  268.00  in CITIC SECURITIES H on December 21, 2024 and sell it today you would earn a total of  0.00  from holding CITIC SECURITIES H or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BANK MANDIRI  vs.  CITIC SECURITIES H

BANK MANDIRI

Risk-Adjusted Performance

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 fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CITIC SECURITIES-H-

Risk-Adjusted Performance

Very Weak

Over the last 90 days CITIC SECURITIES H has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CITIC SECURITIES-H- is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BANK MANDIRI and CITIC SECURITIES-H-

The main advantage of trading using opposite BANK MANDIRI and CITIC SECURITIES-H- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, CITIC SECURITIES-H- 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 CITIC SECURITIES-H- will offset losses from the drop in CITIC SECURITIES-H-'s long position.

The idea behind BANK MANDIRI and CITIC SECURITIES H 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.