Correlation Between Bank Mandiri and Community Bankers
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Community Bankers 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 Community Bankers 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 Community Bankers, you can compare the effects of market volatilities on Bank Mandiri and Community Bankers 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 Community Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Community Bankers.
Diversification Opportunities for Bank Mandiri and Community Bankers
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Community is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Community Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community Bankers 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 Community Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community Bankers has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Community Bankers go up and down completely randomly.
Pair Corralation between Bank Mandiri and Community Bankers
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Community Bankers. In addition to that, Bank Mandiri is 6.81 times more volatile than Community Bankers. It trades about -0.03 of its total potential returns per unit of risk. Community Bankers is currently generating about 0.32 per unit of volatility. If you would invest 469.00 in Community Bankers on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Community Bankers or generate 4.48% 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. Community Bankers
Performance |
| Timeline |
| Bank Mandiri Persero |
| Community Bankers |
Bank Mandiri and Community Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Community Bankers
The main advantage of trading using opposite Bank Mandiri and Community Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Community Bankers 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 Community Bankers will offset losses from the drop in Community Bankers' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Kasikornbank Public Co | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp |
| Community Bankers vs. Bank Mandiri Persero | Community Bankers vs. Piraeus Bank SA | Community Bankers vs. Kasikornbank Public Co | Community Bankers vs. Turkiye Garanti Bankasi |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |