Correlation Between Bank Mandiri and Airborne Wireless
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Airborne Wireless 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 Airborne Wireless 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 Airborne Wireless Network, you can compare the effects of market volatilities on Bank Mandiri and Airborne Wireless 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 Airborne Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Airborne Wireless.
Diversification Opportunities for Bank Mandiri and Airborne Wireless
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Airborne is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Airborne Wireless Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airborne Wireless Network 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 Airborne Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airborne Wireless Network has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Airborne Wireless go up and down completely randomly.
Pair Corralation between Bank Mandiri and Airborne Wireless
Assuming the 90 days horizon Bank Mandiri is expected to generate 90.31 times less return on investment than Airborne Wireless. But when comparing it to its historical volatility, Bank Mandiri Persero is 21.16 times less risky than Airborne Wireless. It trades about 0.02 of its potential returns per unit of risk. Airborne Wireless Network is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Airborne Wireless Network on September 5, 2024 and sell it today you would earn a total of 0.01 from holding Airborne Wireless Network or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Airborne Wireless Network
Performance |
| Timeline |
| Bank Mandiri Persero |
| Airborne Wireless Network |
Bank Mandiri and Airborne Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Airborne Wireless
The main advantage of trading using opposite Bank Mandiri and Airborne Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Airborne Wireless 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 Airborne Wireless will offset losses from the drop in Airborne Wireless' long position.| Bank Mandiri vs. First Hawaiian | Bank Mandiri vs. Central Pacific Financial | Bank Mandiri vs. Territorial Bancorp | Bank Mandiri vs. Comerica |
| Airborne Wireless vs. BCE Inc | Airborne Wireless vs. Axiologix | Airborne Wireless vs. Advanced Info Service | Airborne Wireless vs. American Nortel Communications |
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.
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