Correlation Between Bank Mandiri and Cipta Selera
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Cipta Selera 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 Cipta Selera 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 Cipta Selera Murni, you can compare the effects of market volatilities on Bank Mandiri and Cipta Selera 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 Cipta Selera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Cipta Selera.
Diversification Opportunities for Bank Mandiri and Cipta Selera
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Cipta is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Cipta Selera Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipta Selera Murni 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 Cipta Selera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipta Selera Murni has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Cipta Selera go up and down completely randomly.
Pair Corralation between Bank Mandiri and Cipta Selera
Assuming the 90 days trading horizon Bank Mandiri is expected to generate 1.33 times less return on investment than Cipta Selera. But when comparing it to its historical volatility, Bank Mandiri Persero is 1.17 times less risky than Cipta Selera. It trades about 0.12 of its potential returns per unit of risk. Cipta Selera Murni is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 301,000 in Cipta Selera Murni on October 24, 2024 and sell it today you would earn a total of 19,000 from holding Cipta Selera Murni or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Cipta Selera Murni
Performance |
| Timeline |
| Bank Mandiri Persero |
| Cipta Selera Murni |
Bank Mandiri and Cipta Selera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Cipta Selera
The main advantage of trading using opposite Bank Mandiri and Cipta Selera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Cipta Selera 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 Cipta Selera will offset losses from the drop in Cipta Selera'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 |
| Cipta Selera vs. Net Visi Media | Cipta Selera vs. Surya Citra Media | Cipta Selera vs. Inocycle Technology Tbk | Cipta Selera vs. HK Metals Utama |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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