Correlation Between Bank Mandiri and PT Hatten
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and PT Hatten 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 Hatten 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 Hatten Bali, you can compare the effects of market volatilities on Bank Mandiri and PT Hatten 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 Hatten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and PT Hatten.
Diversification Opportunities for Bank Mandiri and PT Hatten
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and WINE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and PT Hatten Bali in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hatten Bali 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 Hatten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hatten Bali has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and PT Hatten go up and down completely randomly.
Pair Corralation between Bank Mandiri and PT Hatten
Assuming the 90 days trading horizon Bank Mandiri Persero is expected to under-perform the PT Hatten. But the stock apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.37 times less risky than PT Hatten. The stock trades about -0.13 of its potential returns per unit of risk. The PT Hatten Bali is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 37,400 in PT Hatten Bali on August 30, 2024 and sell it today you would lose (2,400) from holding PT Hatten Bali or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. PT Hatten Bali
Performance |
| Timeline |
| Bank Mandiri Persero |
| PT Hatten Bali |
Bank Mandiri and PT Hatten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and PT Hatten
The main advantage of trading using opposite Bank Mandiri and PT Hatten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, PT Hatten 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 Hatten will offset losses from the drop in PT Hatten's long position.| Bank Mandiri vs. Bank Cimb Niaga | Bank Mandiri vs. Indosat Tbk | Bank Mandiri vs. Astra Agro Lestari | Bank Mandiri vs. Indocement Tunggal Prakarsa |
| PT Hatten vs. PT Jobubu Jarum | PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral Tbk |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |