Correlation Between Chevron Corp and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Bank Mandiri 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 Chevron Corp and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Bank Mandiri Persero, you can compare the effects of market volatilities on Chevron Corp and Bank Mandiri 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 Chevron Corp with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Bank Mandiri.
Diversification Opportunities for Chevron Corp and Bank Mandiri
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and Bank is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and Chevron Corp 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 Chevron Corp are associated (or correlated) with Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of Chevron Corp i.e., Chevron Corp and Bank Mandiri go up and down completely randomly.
Pair Corralation between Chevron Corp and Bank Mandiri
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.93 times less return on investment than Bank Mandiri. But when comparing it to its historical volatility, Chevron Corp is 1.48 times less risky than Bank Mandiri. It trades about 0.03 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,470 in Bank Mandiri Persero on August 24, 2024 and sell it today you would earn a total of 106.00 from holding Bank Mandiri Persero or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chevron Corp vs. Bank Mandiri Persero
Performance |
| Timeline |
| Chevron Corp |
| Bank Mandiri Persero |
Chevron Corp and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Bank Mandiri
The main advantage of trading using opposite Chevron Corp and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.| Chevron Corp vs. Exxon Mobil Corp | Chevron Corp vs. Small Cap Core | Chevron Corp vs. Freedom Holding Corp | Chevron Corp vs. Gfl Environmental Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |