Correlation Between Bank Mandiri and BrainChip Holdings
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and BrainChip Holdings 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 BrainChip Holdings 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 BrainChip Holdings, you can compare the effects of market volatilities on Bank Mandiri and BrainChip Holdings 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 BrainChip Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and BrainChip Holdings.
Diversification Opportunities for Bank Mandiri and BrainChip Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and BrainChip is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and BrainChip Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrainChip Holdings 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 BrainChip Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrainChip Holdings has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and BrainChip Holdings go up and down completely randomly.
Pair Corralation between Bank Mandiri and BrainChip Holdings
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.84 times more return on investment than BrainChip Holdings. However, Bank Mandiri Persero is 1.19 times less risky than BrainChip Holdings. It trades about 0.02 of its potential returns per unit of risk. BrainChip Holdings is currently generating about -0.02 per unit of risk. If you would invest 43.00 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Bank Mandiri Persero or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. BrainChip Holdings
Performance |
| Timeline |
| Bank Mandiri Persero |
| BrainChip Holdings |
Bank Mandiri and BrainChip Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and BrainChip Holdings
The main advantage of trading using opposite Bank Mandiri and BrainChip Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, BrainChip Holdings 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 BrainChip Holdings will offset losses from the drop in BrainChip Holdings' 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 |
| BrainChip Holdings vs. Skywater Technology | BrainChip Holdings vs. Everspin Technologies | BrainChip Holdings vs. 4DS Memory Limited | BrainChip Holdings vs. Weebit Nano Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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