Correlation Between Bank Mandiri and AmTrust Financial
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and AmTrust Financial 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 AmTrust Financial 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 AmTrust Financial Services, you can compare the effects of market volatilities on Bank Mandiri and AmTrust Financial 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 AmTrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and AmTrust Financial.
Diversification Opportunities for Bank Mandiri and AmTrust Financial
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and AmTrust is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and AmTrust Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmTrust Financial 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 AmTrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmTrust Financial has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and AmTrust Financial go up and down completely randomly.
Pair Corralation between Bank Mandiri and AmTrust Financial
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 3.4 times more return on investment than AmTrust Financial. However, Bank Mandiri is 3.4 times more volatile than AmTrust Financial Services. It trades about 0.02 of its potential returns per unit of risk. AmTrust Financial Services is currently generating about 0.06 per unit of risk. If you would invest 43.00 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Bank Mandiri Persero or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. AmTrust Financial Services
Performance |
| Timeline |
| Bank Mandiri Persero |
| AmTrust Financial |
Bank Mandiri and AmTrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and AmTrust Financial
The main advantage of trading using opposite Bank Mandiri and AmTrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, AmTrust Financial 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 AmTrust Financial will offset losses from the drop in AmTrust Financial'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 |
| AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |