Correlation Between Bank Mandiri and Electricit
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Electricit 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 Electricit 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 Electricit De France, you can compare the effects of market volatilities on Bank Mandiri and Electricit 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 Electricit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Electricit.
Diversification Opportunities for Bank Mandiri and Electricit
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Electricit is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Electricit De France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electricit De France 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 Electricit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electricit De France has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Electricit go up and down completely randomly.
Pair Corralation between Bank Mandiri and Electricit
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 Against |
| Strength | Very Weak |
| Accuracy | 0.45% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Electricit De France
Performance |
| Timeline |
| Bank Mandiri Persero |
| Electricit De France |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Electricit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Electricit
The main advantage of trading using opposite Bank Mandiri and Electricit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Electricit 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 Electricit will offset losses from the drop in Electricit's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |