Correlation Between BANK MANDIRI and FRACTAL GAMING

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

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

Diversification Opportunities for BANK MANDIRI and FRACTAL GAMING

0.68

Correlation Coefficient

BANK MANDIRI  FRACTAL GAMING

Poor diversification

The 3 months correlation between BANK and FRACTAL is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and FRACTAL GAMING go up and down completely randomly.

Pair Corralation between BANK MANDIRI and FRACTAL GAMING

Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the FRACTAL GAMING. In addition to that, BANK MANDIRI is 1.85 times more volatile than FRACTAL GAMING GROUP. It trades about -0.07 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about -0.08 per unit of volatility. If you would invest  294.00  in FRACTAL GAMING GROUP on September 15, 2024 and sell it today you would lose (22.00) from holding FRACTAL GAMING GROUP or give up 7.48% of portfolio value over 90 days.

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

BANK MANDIRI  vs.  FRACTAL GAMING GROUP

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 latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

FRACTAL GAMING GROUP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FRACTAL GAMING GROUP 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.

Pair Trading with BANK MANDIRI and FRACTAL GAMING

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

The idea behind BANK MANDIRI and FRACTAL GAMING GROUP 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.