Correlation Between Bank Mandiri and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Maming Enam 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 Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Maming Enam Sembilan, you can compare the effects of market volatilities on Bank Mandiri and Maming Enam 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 Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Maming Enam.
Diversification Opportunities for Bank Mandiri and Maming Enam
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Maming is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan 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 Persero are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Maming Enam go up and down completely randomly.
Pair Corralation between Bank Mandiri and Maming Enam
Assuming the 90 days trading horizon Bank Mandiri is expected to generate 59.73 times less return on investment than Maming Enam. But when comparing it to its historical volatility, Bank Mandiri Persero is 5.04 times less risky than Maming Enam. It trades about 0.01 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 11,300 in Maming Enam Sembilan on September 1, 2024 and sell it today you would earn a total of 27,500 from holding Maming Enam Sembilan or generate 243.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Maming Enam Sembilan
Performance |
| Timeline |
| Bank Mandiri Persero |
| Maming Enam Sembilan |
Bank Mandiri and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Maming Enam
The main advantage of trading using opposite Bank Mandiri and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Bank Mandiri vs. Bank Rakyat Indonesia | Bank Mandiri vs. Bank Central Asia | Bank Mandiri vs. Bank Negara Indonesia | Bank Mandiri vs. Astra International Tbk |
| Maming Enam vs. Bank BRISyariah Tbk | Maming Enam vs. Ace Hardware Indonesia | Maming Enam vs. Merdeka Copper Gold | Maming Enam vs. Mitra Pinasthika Mustika |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |