Correlation Between Bank Mandiri and AERWINS Technologies
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and AERWINS Technologies 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 AERWINS Technologies 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 AERWINS Technologies, you can compare the effects of market volatilities on Bank Mandiri and AERWINS Technologies 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 AERWINS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and AERWINS Technologies.
Diversification Opportunities for Bank Mandiri and AERWINS Technologies
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and AERWINS is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies 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 AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and AERWINS Technologies go up and down completely randomly.
Pair Corralation between Bank Mandiri and AERWINS Technologies
Assuming the 90 days horizon Bank Mandiri is expected to generate 17.28 times less return on investment than AERWINS Technologies. But when comparing it to its historical volatility, Bank Mandiri Persero is 7.66 times less risky than AERWINS Technologies. It trades about 0.05 of its potential returns per unit of risk. AERWINS Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2.00 in AERWINS Technologies on August 31, 2024 and sell it today you would lose (1.42) from holding AERWINS Technologies or give up 71.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.19% |
| Values | Daily Returns |
Bank Mandiri Persero vs. AERWINS Technologies
Performance |
| Timeline |
| Bank Mandiri Persero |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and AERWINS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and AERWINS Technologies
The main advantage of trading using opposite Bank Mandiri and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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