Correlation Between Bank Mandiri and Austal
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Austal 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 Austal 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 Austal Limited, you can compare the effects of market volatilities on Bank Mandiri and Austal 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 Austal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Austal.
Diversification Opportunities for Bank Mandiri and Austal
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Austal is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Austal Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austal Limited 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 Austal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austal Limited has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Austal go up and down completely randomly.
Pair Corralation between Bank Mandiri and Austal
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Austal. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.71 times less risky than Austal. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Austal Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Austal Limited on August 25, 2024 and sell it today you would lose (10.00) from holding Austal Limited or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Austal Limited
Performance |
| Timeline |
| Bank Mandiri Persero |
| Austal Limited |
Bank Mandiri and Austal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Austal
The main advantage of trading using opposite Bank Mandiri and Austal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Austal 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 Austal will offset losses from the drop in Austal's long position.| Bank Mandiri vs. Standard Bank Group | Bank Mandiri vs. PSB Holdings | Bank Mandiri vs. United Overseas Bank | Bank Mandiri vs. Turkiye Garanti Bankasi |
| Austal vs. 808 Renewable Energy | Austal vs. Sky Harbour Group | Austal vs. VirTra Inc | Austal vs. Firan Technology Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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