Correlation Between Bank Mandiri and Akbank Turk
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Akbank Turk 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 Akbank Turk 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 Akbank Turk Anonim, you can compare the effects of market volatilities on Bank Mandiri and Akbank Turk 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 Akbank Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Akbank Turk.
Diversification Opportunities for Bank Mandiri and Akbank Turk
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Akbank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Akbank Turk Anonim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank Turk Anonim 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 Akbank Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank Turk Anonim has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Akbank Turk go up and down completely randomly.
Pair Corralation between Bank Mandiri and Akbank Turk
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Akbank Turk. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.01 times less risky than Akbank Turk. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Akbank Turk Anonim is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 357.00 in Akbank Turk Anonim on September 3, 2024 and sell it today you would lose (11.00) from holding Akbank Turk Anonim or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Akbank Turk Anonim
Performance |
| Timeline |
| Bank Mandiri Persero |
| Akbank Turk Anonim |
Bank Mandiri and Akbank Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Akbank Turk
The main advantage of trading using opposite Bank Mandiri and Akbank Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Akbank Turk 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 Akbank Turk will offset losses from the drop in Akbank Turk'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 |
| Akbank Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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