Correlation Between Bank Mandiri and Acorda Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Acorda Therapeutics 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 Acorda Therapeutics 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 Acorda Therapeutics, you can compare the effects of market volatilities on Bank Mandiri and Acorda Therapeutics 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 Acorda Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Acorda Therapeutics.
Diversification Opportunities for Bank Mandiri and Acorda Therapeutics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Acorda is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Acorda Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorda Therapeutics 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 Acorda Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorda Therapeutics has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Acorda Therapeutics go up and down completely randomly.
Pair Corralation between Bank Mandiri and Acorda Therapeutics
If you would invest 38.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Bank Mandiri Persero or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Acorda Therapeutics
Performance |
| Timeline |
| Bank Mandiri Persero |
| Acorda Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Acorda Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Acorda Therapeutics
The main advantage of trading using opposite Bank Mandiri and Acorda Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Acorda Therapeutics 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 Acorda Therapeutics will offset losses from the drop in Acorda Therapeutics' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Acorda Therapeutics vs. Shionogi Co | Acorda Therapeutics vs. Pacira BioSciences, | Acorda Therapeutics vs. Sunshine Biopharma Warrant | Acorda Therapeutics vs. Biofrontera |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |