Correlation Between Bank Mandiri and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Acasti Pharma 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 Acasti Pharma 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 Acasti Pharma, you can compare the effects of market volatilities on Bank Mandiri and Acasti Pharma 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 Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Acasti Pharma.
Diversification Opportunities for Bank Mandiri and Acasti Pharma
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Acasti is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma 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 Acasti Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acasti Pharma has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Acasti Pharma go up and down completely randomly.
Pair Corralation between Bank Mandiri and Acasti Pharma
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 1.2 times more return on investment than Acasti Pharma. However, Bank Mandiri is 1.2 times more volatile than Acasti Pharma. It trades about 0.02 of its potential returns per unit of risk. Acasti Pharma is currently generating about 0.01 per unit of risk. If you would invest 44.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would lose (1.00) from holding Bank Mandiri Persero or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.19% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Acasti Pharma
Performance |
| Timeline |
| Bank Mandiri Persero |
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Bank Mandiri and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Acasti Pharma
The main advantage of trading using opposite Bank Mandiri and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Acasti Pharma 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 Acasti Pharma will offset losses from the drop in Acasti Pharma's 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 |
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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 Stocks Directory module to find actively traded stocks across global markets.
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