Correlation Between Akbank Turk and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Akbank Turk 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 Akbank Turk and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akbank Turk Anonim and Bank Mandiri Persero, you can compare the effects of market volatilities on Akbank Turk 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 Akbank Turk with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akbank Turk and Bank Mandiri.
Diversification Opportunities for Akbank Turk and Bank Mandiri
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akbank and Bank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Akbank Turk Anonim and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and Akbank Turk 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 Akbank Turk Anonim 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 Persero has no effect on the direction of Akbank Turk i.e., Akbank Turk and Bank Mandiri go up and down completely randomly.
Pair Corralation between Akbank Turk and Bank Mandiri
Assuming the 90 days horizon Akbank Turk Anonim is expected to generate 0.87 times more return on investment than Bank Mandiri. However, Akbank Turk Anonim is 1.15 times less risky than Bank Mandiri. It trades about 0.16 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.03 per unit of risk. If you would invest 309.00 in Akbank Turk Anonim on September 2, 2024 and sell it today you would earn a total of 37.00 from holding Akbank Turk Anonim or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akbank Turk Anonim vs. Bank Mandiri Persero
Performance |
| Timeline |
| Akbank Turk Anonim |
| Bank Mandiri Persero |
Akbank Turk and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akbank Turk and Bank Mandiri
The main advantage of trading using opposite Akbank Turk and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akbank Turk 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.| Akbank Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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