Correlation Between Bank Mandiri and Atlantic Coastal
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Atlantic Coastal 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 Atlantic Coastal 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 Atlantic Coastal Acquisition, you can compare the effects of market volatilities on Bank Mandiri and Atlantic Coastal 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 Atlantic Coastal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Atlantic Coastal.
Diversification Opportunities for Bank Mandiri and Atlantic Coastal
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Atlantic is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Atlantic Coastal Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Coastal Acq 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 Atlantic Coastal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Coastal Acq has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Atlantic Coastal go up and down completely randomly.
Pair Corralation between Bank Mandiri and Atlantic Coastal
If you would invest 1,040 in Atlantic Coastal Acquisition on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Atlantic Coastal Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Atlantic Coastal Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| Atlantic Coastal Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Atlantic Coastal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Atlantic Coastal
The main advantage of trading using opposite Bank Mandiri and Atlantic Coastal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Atlantic Coastal 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 Atlantic Coastal will offset losses from the drop in Atlantic Coastal's long position.| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |