Correlation Between Bank Mandiri and Fimperkasa Utama
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Fimperkasa Utama 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 Fimperkasa Utama 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 Fimperkasa Utama Tbk, you can compare the effects of market volatilities on Bank Mandiri and Fimperkasa Utama 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 Fimperkasa Utama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Fimperkasa Utama.
Diversification Opportunities for Bank Mandiri and Fimperkasa Utama
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Fimperkasa is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Fimperkasa Utama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fimperkasa Utama 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 Fimperkasa Utama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fimperkasa Utama Tbk has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Fimperkasa Utama go up and down completely randomly.
Pair Corralation between Bank Mandiri and Fimperkasa Utama
If you would invest 4,500 in Fimperkasa Utama Tbk on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Fimperkasa Utama Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Fimperkasa Utama Tbk
Performance |
| Timeline |
| Bank Mandiri Persero |
| Fimperkasa Utama Tbk |
Bank Mandiri and Fimperkasa Utama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Fimperkasa Utama
The main advantage of trading using opposite Bank Mandiri and Fimperkasa Utama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Fimperkasa Utama 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 Fimperkasa Utama will offset losses from the drop in Fimperkasa Utama'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 |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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