Correlation Between Bank Mandiri and Envestnet
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Envestnet 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 Envestnet 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 Envestnet, you can compare the effects of market volatilities on Bank Mandiri and Envestnet 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 Envestnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Envestnet.
Diversification Opportunities for Bank Mandiri and Envestnet
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Envestnet is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Envestnet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Envestnet 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 Envestnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Envestnet has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Envestnet go up and down completely randomly.
Pair Corralation between Bank Mandiri and Envestnet
Assuming the 90 days horizon Bank Mandiri is expected to generate 1.81 times less return on investment than Envestnet. In addition to that, Bank Mandiri is 2.73 times more volatile than Envestnet. It trades about 0.01 of its total potential returns per unit of risk. Envestnet is currently generating about 0.07 per unit of volatility. If you would invest 5,095 in Envestnet on October 20, 2024 and sell it today you would earn a total of 1,219 from holding Envestnet or generate 23.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.5% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Envestnet
Performance |
| Timeline |
| Bank Mandiri Persero |
| Envestnet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Bank Mandiri and Envestnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Envestnet
The main advantage of trading using opposite Bank Mandiri and Envestnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Envestnet 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 Envestnet will offset losses from the drop in Envestnet's long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
| Envestnet vs. CommVault Systems | Envestnet vs. Manhattan Associates | Envestnet vs. Agilysys | Envestnet vs. Aspen Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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