Correlation Between Bank Mandiri and PT Carsurin
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and PT Carsurin 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 PT Carsurin 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 PT Carsurin Tbk, you can compare the effects of market volatilities on Bank Mandiri and PT Carsurin 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 PT Carsurin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and PT Carsurin.
Diversification Opportunities for Bank Mandiri and PT Carsurin
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and CRSN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and PT Carsurin Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Carsurin Tbk 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 PT Carsurin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Carsurin Tbk has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and PT Carsurin go up and down completely randomly.
Pair Corralation between Bank Mandiri and PT Carsurin
Assuming the 90 days trading horizon Bank Mandiri Persero is expected to generate 1.24 times more return on investment than PT Carsurin. However, Bank Mandiri is 1.24 times more volatile than PT Carsurin Tbk. It trades about 0.15 of its potential returns per unit of risk. PT Carsurin Tbk is currently generating about -0.21 per unit of risk. If you would invest 580,000 in Bank Mandiri Persero on November 4, 2024 and sell it today you would earn a total of 32,500 from holding Bank Mandiri Persero or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bank Mandiri Persero vs. PT Carsurin Tbk
Performance |
| Timeline |
| Bank Mandiri Persero |
| PT Carsurin Tbk |
Bank Mandiri and PT Carsurin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and PT Carsurin
The main advantage of trading using opposite Bank Mandiri and PT Carsurin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, PT Carsurin 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 PT Carsurin will offset losses from the drop in PT Carsurin'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 |
| PT Carsurin vs. Dharma Polimetal Tbk | PT Carsurin vs. Alumindo Light Metal | PT Carsurin vs. Garudafood Putra Putri | PT Carsurin vs. Optima Prima Metal |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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