Correlation Between Bank Mandiri and Grayscale Ethereum
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Grayscale Ethereum 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 Grayscale Ethereum 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 Grayscale Ethereum Classic, you can compare the effects of market volatilities on Bank Mandiri and Grayscale Ethereum 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 Grayscale Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Grayscale Ethereum.
Diversification Opportunities for Bank Mandiri and Grayscale Ethereum
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Grayscale is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Grayscale Ethereum Classic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Ethereum 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 Grayscale Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Ethereum has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Grayscale Ethereum go up and down completely randomly.
Pair Corralation between Bank Mandiri and Grayscale Ethereum
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.83 times more return on investment than Grayscale Ethereum. However, Bank Mandiri Persero is 1.2 times less risky than Grayscale Ethereum. It trades about 0.05 of its potential returns per unit of risk. Grayscale Ethereum Classic is currently generating about 0.03 per unit of risk. If you would invest 37.00 in Bank Mandiri Persero on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Bank Mandiri Persero or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Grayscale Ethereum Classic
Performance |
| Timeline |
| Bank Mandiri Persero |
| Grayscale Ethereum |
Bank Mandiri and Grayscale Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Grayscale Ethereum
The main advantage of trading using opposite Bank Mandiri and Grayscale Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Grayscale Ethereum 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 Grayscale Ethereum will offset losses from the drop in Grayscale Ethereum's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Grayscale Ethereum vs. Grayscale Bitcoin Cash | Grayscale Ethereum vs. Grayscale Litecoin Trust | Grayscale Ethereum vs. Grayscale Digital Large | Grayscale Ethereum vs. Grayscale Ethereum Trust |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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