Correlation Between PT Cilacap and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both PT Cilacap 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 PT Cilacap and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Cilacap Samudera and Bank Mandiri Persero, you can compare the effects of market volatilities on PT Cilacap 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 PT Cilacap with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and Bank Mandiri.
Diversification Opportunities for PT Cilacap and Bank Mandiri
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASHA and Bank is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera 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 PT Cilacap 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 PT Cilacap Samudera 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 PT Cilacap i.e., PT Cilacap and Bank Mandiri go up and down completely randomly.
Pair Corralation between PT Cilacap and Bank Mandiri
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to under-perform the Bank Mandiri. In addition to that, PT Cilacap is 2.42 times more volatile than Bank Mandiri Persero. It trades about -0.11 of its total potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.17 per unit of volatility. If you would invest 670,000 in Bank Mandiri Persero on September 1, 2024 and sell it today you would lose (55,000) from holding Bank Mandiri Persero or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Cilacap Samudera vs. Bank Mandiri Persero
Performance |
| Timeline |
| PT Cilacap Samudera |
| Bank Mandiri Persero |
PT Cilacap and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and Bank Mandiri
The main advantage of trading using opposite PT Cilacap and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap 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.| PT Cilacap vs. PT Dewi Shri | PT Cilacap vs. Adaro Minerals Indonesia | PT Cilacap vs. Autopedia Sukses Lestari | PT Cilacap vs. Wir Asia Tbk |
| Bank Mandiri vs. Bank Rakyat Indonesia | Bank Mandiri vs. Bank Central Asia | Bank Mandiri vs. Bank Negara Indonesia | Bank Mandiri vs. Astra International Tbk |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets |