Correlation Between Bank Mandiri and CurrentC Power
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and CurrentC Power 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 CurrentC Power 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 CurrentC Power, you can compare the effects of market volatilities on Bank Mandiri and CurrentC Power 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 CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and CurrentC Power.
Diversification Opportunities for Bank Mandiri and CurrentC Power
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and CurrentC is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power 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 CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and CurrentC Power go up and down completely randomly.
Pair Corralation between Bank Mandiri and CurrentC Power
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the CurrentC Power. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 7.32 times less risky than CurrentC Power. The pink sheet trades about -0.17 of its potential returns per unit of risk. The CurrentC Power is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 12.00 in CurrentC Power on August 27, 2024 and sell it today you would earn a total of 11.00 from holding CurrentC Power or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. CurrentC Power
Performance |
| Timeline |
| Bank Mandiri Persero |
| CurrentC Power |
Bank Mandiri and CurrentC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and CurrentC Power
The main advantage of trading using opposite Bank Mandiri and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.The idea behind Bank Mandiri Persero and CurrentC Power pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CurrentC Power vs. Titan Machinery | CurrentC Power vs. Sun Country Airlines | CurrentC Power vs. Sea | CurrentC Power vs. Lindblad Expeditions Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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