Correlation Between Partners Bank and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Partners Bank 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 Partners Bank and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partners Bank of and Bank Mandiri Persero, you can compare the effects of market volatilities on Partners Bank 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 Partners Bank with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Bank and Bank Mandiri.
Diversification Opportunities for Partners Bank and Bank Mandiri
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Partners and Bank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Partners Bank of 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 Partners Bank 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 Partners Bank of 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 Partners Bank i.e., Partners Bank and Bank Mandiri go up and down completely randomly.
Pair Corralation between Partners Bank and Bank Mandiri
Given the investment horizon of 90 days Partners Bank of is expected to generate 0.39 times more return on investment than Bank Mandiri. However, Partners Bank of is 2.57 times less risky than Bank Mandiri. It trades about 0.05 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.02 per unit of risk. If you would invest 935.00 in Partners Bank of on September 3, 2024 and sell it today you would earn a total of 44.00 from holding Partners Bank of or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Partners Bank of vs. Bank Mandiri Persero
Performance |
| Timeline |
| Partners Bank |
| Bank Mandiri Persero |
Partners Bank and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partners Bank and Bank Mandiri
The main advantage of trading using opposite Partners Bank and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Bank 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.| Partners Bank vs. First Hawaiian | Partners Bank vs. Central Pacific Financial | Partners Bank vs. Territorial Bancorp | Partners Bank vs. Comerica |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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