Correlation Between Bank Mandiri and Chesapeake Finl
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Chesapeake Finl 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 Chesapeake Finl 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 Chesapeake Finl Shs, you can compare the effects of market volatilities on Bank Mandiri and Chesapeake Finl 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 Chesapeake Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Chesapeake Finl.
Diversification Opportunities for Bank Mandiri and Chesapeake Finl
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Chesapeake is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Chesapeake Finl Shs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Finl Shs 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 Chesapeake Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Finl Shs has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Chesapeake Finl go up and down completely randomly.
Pair Corralation between Bank Mandiri and Chesapeake Finl
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 2.1 times more return on investment than Chesapeake Finl. However, Bank Mandiri is 2.1 times more volatile than Chesapeake Finl Shs. It trades about 0.03 of its potential returns per unit of risk. Chesapeake Finl Shs is currently generating about 0.04 per unit of risk. If you would invest 41.00 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Bank Mandiri Persero or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.77% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Chesapeake Finl Shs
Performance |
| Timeline |
| Bank Mandiri Persero |
| Chesapeake Finl Shs |
Bank Mandiri and Chesapeake Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Chesapeake Finl
The main advantage of trading using opposite Bank Mandiri and Chesapeake Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Chesapeake Finl 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 Chesapeake Finl will offset losses from the drop in Chesapeake Finl'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 |
| Chesapeake Finl vs. Western Asset Global | Chesapeake Finl vs. Invesco Trust For | Chesapeake Finl vs. Logan Ridge Finance | Chesapeake Finl vs. Invesco Advantage MIT |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |