Correlation Between Apollo Bancorp and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp 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 Apollo Bancorp and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and Bank Mandiri Persero, you can compare the effects of market volatilities on Apollo Bancorp 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 Apollo Bancorp with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Bank Mandiri.
Diversification Opportunities for Apollo Bancorp and Bank Mandiri
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Bank is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp 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 Apollo Bancorp 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 Apollo Bancorp 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 Apollo Bancorp i.e., Apollo Bancorp and Bank Mandiri go up and down completely randomly.
Pair Corralation between Apollo Bancorp and Bank Mandiri
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 1.35 times less return on investment than Bank Mandiri. But when comparing it to its historical volatility, Apollo Bancorp is 14.86 times less risky than Bank Mandiri. It trades about 0.24 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Bank Mandiri Persero or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Bancorp vs. Bank Mandiri Persero
Performance |
| Timeline |
| Apollo Bancorp |
| Bank Mandiri Persero |
Apollo Bancorp and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and Bank Mandiri
The main advantage of trading using opposite Apollo Bancorp and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp 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.| Apollo Bancorp vs. First Hawaiian | Apollo Bancorp vs. Central Pacific Financial | Apollo Bancorp vs. Territorial Bancorp | Apollo Bancorp vs. Comerica |
| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |