Correlation Between Bank Mandiri and Diffusion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Diffusion Pharmaceuticals 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 Diffusion Pharmaceuticals 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 Diffusion Pharmaceuticals, you can compare the effects of market volatilities on Bank Mandiri and Diffusion Pharmaceuticals 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 Diffusion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Diffusion Pharmaceuticals.
Diversification Opportunities for Bank Mandiri and Diffusion Pharmaceuticals
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Diffusion is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Diffusion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diffusion Pharmaceuticals 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 Diffusion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diffusion Pharmaceuticals has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Diffusion Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bank Mandiri and Diffusion Pharmaceuticals
If you would invest 44.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would lose (1.00) from holding Bank Mandiri Persero or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.54% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Diffusion Pharmaceuticals
Performance |
| Timeline |
| Bank Mandiri Persero |
| Diffusion Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Diffusion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Diffusion Pharmaceuticals
The main advantage of trading using opposite Bank Mandiri and Diffusion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Diffusion Pharmaceuticals 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 Diffusion Pharmaceuticals will offset losses from the drop in Diffusion Pharmaceuticals' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Diffusion Pharmaceuticals vs. Bio Path Holdings | Diffusion Pharmaceuticals vs. Capricor Therapeutics | Diffusion Pharmaceuticals vs. NextCure | Diffusion Pharmaceuticals vs. Tonix Pharmaceuticals Holding |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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