Correlation Between Bank Mandiri and APx Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and APx Acquisition 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 APx Acquisition 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 APx Acquisition I, you can compare the effects of market volatilities on Bank Mandiri and APx Acquisition 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 APx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and APx Acquisition.
Diversification Opportunities for Bank Mandiri and APx Acquisition
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and APx is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and APx Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APx Acquisition I 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 APx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APx Acquisition I has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and APx Acquisition go up and down completely randomly.
Pair Corralation between Bank Mandiri and APx Acquisition
If you would invest 36.00 in Bank Mandiri Persero on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Bank Mandiri Persero or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bank Mandiri Persero vs. APx Acquisition I
Performance |
| Timeline |
| Bank Mandiri Persero |
| APx Acquisition I |
Bank Mandiri and APx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and APx Acquisition
The main advantage of trading using opposite Bank Mandiri and APx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, APx Acquisition 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 APx Acquisition will offset losses from the drop in APx Acquisition'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 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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