Correlation Between HELIOS TECHS and BANK MANDIRI

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

By analyzing existing cross correlation between HELIOS TECHS INC and BANK MANDIRI, you can compare the effects of market volatilities on HELIOS TECHS and BANK MANDIRI 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 HELIOS TECHS with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of HELIOS TECHS and BANK MANDIRI.

Diversification Opportunities for HELIOS TECHS and BANK MANDIRI

-0.39

Correlation Coefficient

HELIOS TECHS  BANK MANDIRI

Very good diversification

The 3 months correlation between HELIOS and BANK is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding HELIOS TECHS INC and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and HELIOS TECHS 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 HELIOS TECHS INC are associated (or correlated) with BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of HELIOS TECHS i.e., HELIOS TECHS and BANK MANDIRI go up and down completely randomly.

Pair Corralation between HELIOS TECHS and BANK MANDIRI

Assuming the 90 days horizon HELIOS TECHS INC is expected to under-perform the BANK MANDIRI. In addition to that, HELIOS TECHS is 1.11 times more volatile than BANK MANDIRI. It trades about -0.43 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about -0.34 per unit of volatility. If you would invest  35.00  in BANK MANDIRI on October 8, 2024 and sell it today you would lose (3.00) from holding BANK MANDIRI or give up 8.57% of portfolio value over 90 days.

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

HELIOS TECHS INC  vs.  BANK MANDIRI

HELIOS TECHS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HELIOS TECHS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HELIOS TECHS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BANK MANDIRI

Risk-Adjusted Performance

0 of 100

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 unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with HELIOS TECHS and BANK MANDIRI

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

The idea behind HELIOS TECHS INC and BANK MANDIRI 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 Stocks Directory module to find actively traded stocks across global markets.