Correlation Between Bank Mandiri and Panorama Sentrawisata
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Panorama Sentrawisata 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 Panorama Sentrawisata 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 Panorama Sentrawisata Tbk, you can compare the effects of market volatilities on Bank Mandiri and Panorama Sentrawisata 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 Panorama Sentrawisata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Panorama Sentrawisata.
Diversification Opportunities for Bank Mandiri and Panorama Sentrawisata
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Panorama is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Panorama Sentrawisata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panorama Sentrawisata 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 Panorama Sentrawisata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panorama Sentrawisata Tbk has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Panorama Sentrawisata go up and down completely randomly.
Pair Corralation between Bank Mandiri and Panorama Sentrawisata
Assuming the 90 days trading horizon Bank Mandiri Persero is expected to generate 0.86 times more return on investment than Panorama Sentrawisata. However, Bank Mandiri Persero is 1.17 times less risky than Panorama Sentrawisata. It trades about 0.03 of its potential returns per unit of risk. Panorama Sentrawisata Tbk is currently generating about -0.03 per unit of risk. If you would invest 563,673 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 51,327 from holding Bank Mandiri Persero or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Panorama Sentrawisata Tbk
Performance |
| Timeline |
| Bank Mandiri Persero |
| Panorama Sentrawisata Tbk |
Bank Mandiri and Panorama Sentrawisata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Panorama Sentrawisata
The main advantage of trading using opposite Bank Mandiri and Panorama Sentrawisata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Panorama Sentrawisata 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 Panorama Sentrawisata will offset losses from the drop in Panorama Sentrawisata'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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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