Correlation Between Bank Mandiri and Qsam Biosciences

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Qsam Biosciences 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 Qsam Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Qsam Biosciences, you can compare the effects of market volatilities on Bank Mandiri and Qsam Biosciences 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 Qsam Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Qsam Biosciences.

Diversification Opportunities for Bank Mandiri and Qsam Biosciences

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Bank and Qsam is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Qsam Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qsam Biosciences 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 Persero are associated (or correlated) with Qsam Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qsam Biosciences has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Qsam Biosciences go up and down completely randomly.

Pair Corralation between Bank Mandiri and Qsam Biosciences

If you would invest  449.00  in Qsam Biosciences on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Qsam Biosciences or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy1.56%
ValuesDaily Returns

Bank Mandiri Persero  vs.  Qsam Biosciences

 Performance 
       Timeline  
Bank Mandiri Persero 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bank Mandiri Persero has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Qsam Biosciences 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Qsam Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Qsam Biosciences is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Bank Mandiri and Qsam Biosciences Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bank Mandiri and Qsam Biosciences

The main advantage of trading using opposite Bank Mandiri and Qsam Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Qsam Biosciences 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 Qsam Biosciences will offset losses from the drop in Qsam Biosciences' long position.
The idea behind Bank Mandiri Persero and Qsam Biosciences 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.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated