Correlation Between Bank Mandiri and DCP Midstream
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and DCP Midstream 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 DCP Midstream 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 DCP Midstream LP, you can compare the effects of market volatilities on Bank Mandiri and DCP Midstream 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 DCP Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and DCP Midstream.
Diversification Opportunities for Bank Mandiri and DCP Midstream
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and DCP is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and DCP Midstream LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCP Midstream LP 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 DCP Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCP Midstream LP has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and DCP Midstream go up and down completely randomly.
Pair Corralation between Bank Mandiri and DCP Midstream
If you would invest 4,169 in DCP Midstream LP on September 2, 2024 and sell it today you would earn a total of 0.00 from holding DCP Midstream LP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Mandiri Persero vs. DCP Midstream LP
Performance |
| Timeline |
| Bank Mandiri Persero |
| DCP Midstream LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and DCP Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and DCP Midstream
The main advantage of trading using opposite Bank Mandiri and DCP Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, DCP Midstream 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 DCP Midstream will offset losses from the drop in DCP Midstream's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| DCP Midstream vs. EnLink Midstream LLC | DCP Midstream vs. Western Midstream Partners | DCP Midstream vs. Targa Resources | DCP Midstream vs. Hess Midstream Partners |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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