Correlation Between Bank Mandiri and Alpine Immune
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Alpine Immune 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 Alpine Immune 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 Alpine Immune Sciences, you can compare the effects of market volatilities on Bank Mandiri and Alpine Immune 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 Alpine Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Alpine Immune.
Diversification Opportunities for Bank Mandiri and Alpine Immune
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Alpine is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Alpine Immune Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Immune 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 Alpine Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Immune Sciences has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Alpine Immune go up and down completely randomly.
Pair Corralation between Bank Mandiri and Alpine Immune
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 3.13 times more return on investment than Alpine Immune. However, Bank Mandiri is 3.13 times more volatile than Alpine Immune Sciences. It trades about 0.05 of its potential returns per unit of risk. Alpine Immune Sciences is currently generating about 0.13 per unit of risk. If you would invest 30.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Bank Mandiri Persero or generate 43.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 27.87% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Alpine Immune Sciences
Performance |
| Timeline |
| Bank Mandiri Persero |
| Alpine Immune Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Alpine Immune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Alpine Immune
The main advantage of trading using opposite Bank Mandiri and Alpine Immune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Alpine Immune 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 Alpine Immune will offset losses from the drop in Alpine Immune'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 |
| Alpine Immune vs. Terns Pharmaceuticals | Alpine Immune vs. Day One Biopharmaceuticals | Alpine Immune vs. Acumen Pharmaceuticals | Alpine Immune vs. Amylyx Pharmaceuticals |
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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