Correlation Between JAPAN POST and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both JAPAN POST 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 JAPAN POST and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAPAN POST BANK and Bank Mandiri Persero, you can compare the effects of market volatilities on JAPAN POST 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 JAPAN POST with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN POST and Bank Mandiri.
Diversification Opportunities for JAPAN POST and Bank Mandiri
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JAPAN and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN POST BANK 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 JAPAN POST 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 JAPAN POST BANK 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 JAPAN POST i.e., JAPAN POST and Bank Mandiri go up and down completely randomly.
Pair Corralation between JAPAN POST and Bank Mandiri
If you would invest 942.00 in JAPAN POST BANK on November 3, 2024 and sell it today you would earn a total of 0.00 from holding JAPAN POST BANK or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
JAPAN POST BANK vs. Bank Mandiri Persero
Performance |
| Timeline |
| JAPAN POST BANK |
| Bank Mandiri Persero |
JAPAN POST and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAN POST and Bank Mandiri
The main advantage of trading using opposite JAPAN POST and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN POST 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.| JAPAN POST vs. JAPAN POST BANK | JAPAN POST vs. Bankinter SA ADR | JAPAN POST vs. First Horizon | JAPAN POST vs. CaixaBank SA |
| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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