Correlation Between Bank Mandiri and Cetus Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Cetus Capital 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 Cetus Capital 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 Cetus Capital Acquisition, you can compare the effects of market volatilities on Bank Mandiri and Cetus Capital 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 Cetus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Cetus Capital.
Diversification Opportunities for Bank Mandiri and Cetus Capital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Cetus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Cetus Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cetus Capital Acquisition 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 Cetus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cetus Capital Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Cetus Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and Cetus Capital
Assuming the 90 days horizon Bank Mandiri is expected to generate 10.24 times less return on investment than Cetus Capital. But when comparing it to its historical volatility, Bank Mandiri Persero is 6.79 times less risky than Cetus Capital. It trades about 0.03 of its potential returns per unit of risk. Cetus Capital Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,041 in Cetus Capital Acquisition on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Cetus Capital Acquisition or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.82% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Cetus Capital Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| Cetus Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Cetus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Cetus Capital
The main advantage of trading using opposite Bank Mandiri and Cetus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Cetus Capital 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 Cetus Capital will offset losses from the drop in Cetus Capital'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 |
| Cetus Capital vs. United Rentals | Cetus Capital vs. Westrock Coffee | Cetus Capital vs. Molson Coors Brewing | Cetus Capital vs. Universal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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