Correlation Between BANK MANDIRI and AURUBIS -

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

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

Diversification Opportunities for BANK MANDIRI and AURUBIS -

-0.83

Correlation Coefficient

BANK MANDIRI  AURUBIS -

Pay attention - limited upside

The 3 months correlation between BANK and AURUBIS is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and AURUBIS Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AURUBIS Dusseldorf 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 AURUBIS -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AURUBIS Dusseldorf has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and AURUBIS - go up and down completely randomly.

Pair Corralation between BANK MANDIRI and AURUBIS -

Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the AURUBIS -. In addition to that, BANK MANDIRI is 3.03 times more volatile than AURUBIS Dusseldorf. It trades about -0.07 of its total potential returns per unit of risk. AURUBIS Dusseldorf is currently generating about 0.13 per unit of volatility. If you would invest  7,750  in AURUBIS Dusseldorf on December 22, 2024 and sell it today you would earn a total of  1,190  from holding AURUBIS Dusseldorf or generate 15.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

BANK MANDIRI  vs.  AURUBIS Dusseldorf

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 uncertain 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.

AURUBIS Dusseldorf

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AURUBIS Dusseldorf are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, AURUBIS - unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BANK MANDIRI and AURUBIS -

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

The idea behind BANK MANDIRI and AURUBIS Dusseldorf 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.