Correlation Between Bank Mandiri and AP Mller
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and AP Mller 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 AP Mller 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 AP Mller , you can compare the effects of market volatilities on Bank Mandiri and AP Mller 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 AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and AP Mller.
Diversification Opportunities for Bank Mandiri and AP Mller
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and AMKBF is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller 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 AP Mller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Mller has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and AP Mller go up and down completely randomly.
Pair Corralation between Bank Mandiri and AP Mller
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the AP Mller. In addition to that, Bank Mandiri is 1.91 times more volatile than AP Mller . It trades about 0.0 of its total potential returns per unit of risk. AP Mller is currently generating about 0.19 per unit of volatility. If you would invest 149,315 in AP Mller on August 31, 2024 and sell it today you would earn a total of 14,293 from holding AP Mller or generate 9.57% 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. AP Mller
Performance |
| Timeline |
| Bank Mandiri Persero |
| AP Mller |
Bank Mandiri and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and AP Mller
The main advantage of trading using opposite Bank Mandiri and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, AP Mller 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 AP Mller will offset losses from the drop in AP Mller'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 |
| AP Mller vs. Mitsui OSK Lines | AP Mller vs. Hapag Lloyd Aktiengesellschaft | AP Mller vs. Orient Overseas Limited | AP Mller vs. Hapag Lloyd Aktiengesellschaft |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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