Correlation Between Bank Mandiri and Alimera Sciences
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Alimera Sciences 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 Alimera Sciences 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 Alimera Sciences, you can compare the effects of market volatilities on Bank Mandiri and Alimera Sciences 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 Alimera Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Alimera Sciences.
Diversification Opportunities for Bank Mandiri and Alimera Sciences
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Alimera is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Alimera Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimera Sciences 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 Alimera Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimera Sciences has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Alimera Sciences go up and down completely randomly.
Pair Corralation between Bank Mandiri and Alimera Sciences
If you would invest 554.00 in Alimera Sciences on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Alimera Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Alimera Sciences
Performance |
| Timeline |
| Bank Mandiri Persero |
| Alimera Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Bank Mandiri and Alimera Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Alimera Sciences
The main advantage of trading using opposite Bank Mandiri and Alimera Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Alimera Sciences 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 Alimera Sciences will offset losses from the drop in Alimera Sciences' 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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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