Correlation Between Bank Mandiri and Cytodyn
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Cytodyn 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 Cytodyn 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 Cytodyn, you can compare the effects of market volatilities on Bank Mandiri and Cytodyn 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 Cytodyn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Cytodyn.
Diversification Opportunities for Bank Mandiri and Cytodyn
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Cytodyn is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Cytodyn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytodyn 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 Cytodyn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytodyn has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Cytodyn go up and down completely randomly.
Pair Corralation between Bank Mandiri and Cytodyn
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.54 times more return on investment than Cytodyn. However, Bank Mandiri Persero is 1.84 times less risky than Cytodyn. It trades about 0.04 of its potential returns per unit of risk. Cytodyn is currently generating about -0.02 per unit of risk. If you would invest 35.00 in Bank Mandiri Persero on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Bank Mandiri Persero or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.32% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Cytodyn
Performance |
| Timeline |
| Bank Mandiri Persero |
| Cytodyn |
Bank Mandiri and Cytodyn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Cytodyn
The main advantage of trading using opposite Bank Mandiri and Cytodyn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Cytodyn 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 Cytodyn will offset losses from the drop in Cytodyn's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Cytodyn vs. Madrigal Pharmaceuticals | Cytodyn vs. Scpharmaceuticals | Cytodyn vs. Akero Therapeutics | Cytodyn vs. Cardiff Oncology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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