Correlation Between Guidewire Software and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Guidewire Software 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 Guidewire Software and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidewire Software and BANK MANDIRI, you can compare the effects of market volatilities on Guidewire Software 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 Guidewire Software with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidewire Software and BANK MANDIRI.
Diversification Opportunities for Guidewire Software and BANK MANDIRI
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guidewire and BANK is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guidewire Software and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Guidewire Software 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 Guidewire Software 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 Guidewire Software i.e., Guidewire Software and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Guidewire Software and BANK MANDIRI
Assuming the 90 days trading horizon Guidewire Software is expected to under-perform the BANK MANDIRI. In addition to that, Guidewire Software is 1.04 times more volatile than BANK MANDIRI. It trades about 0.0 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about 0.01 per unit of volatility. If you would invest 20.00 in BANK MANDIRI on September 3, 2025 and sell it today you would earn a total of 0.00 from holding BANK MANDIRI 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 |
Guidewire Software vs. BANK MANDIRI
Performance |
| Timeline |
| Guidewire Software |
| BANK MANDIRI |
Guidewire Software and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidewire Software and BANK MANDIRI
The main advantage of trading using opposite Guidewire Software and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidewire Software 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.| Guidewire Software vs. Nanjing Panda Electronics | Guidewire Software vs. Genertec Universal Medical | Guidewire Software vs. Delta Electronics Public | Guidewire Software vs. GLOBUS MEDICAL A |
| BANK MANDIRI vs. Wenzhou Kangning Hospital | BANK MANDIRI vs. Sims Metal Management | BANK MANDIRI vs. TRADEDOUBLER AB SK | BANK MANDIRI vs. Ramsay Health Care |
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.
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