Correlation Between Bank Mandiri and Whole Earth
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Whole Earth 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 Whole Earth 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 Whole Earth Brands, you can compare the effects of market volatilities on Bank Mandiri and Whole Earth 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 Whole Earth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Whole Earth.
Diversification Opportunities for Bank Mandiri and Whole Earth
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Whole is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Whole Earth Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whole Earth Brands 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 Whole Earth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whole Earth Brands has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Whole Earth go up and down completely randomly.
Pair Corralation between Bank Mandiri and Whole Earth
If you would invest (100.00) in Whole Earth Brands on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Whole Earth Brands or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Whole Earth Brands
Performance |
| Timeline |
| Bank Mandiri Persero |
| Whole Earth Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Whole Earth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Whole Earth
The main advantage of trading using opposite Bank Mandiri and Whole Earth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Whole Earth 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 Whole Earth will offset losses from the drop in Whole Earth's long position.The idea behind Bank Mandiri Persero and Whole Earth Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Whole Earth vs. Seneca Foods Corp | Whole Earth vs. Lifeway Foods | Whole Earth vs. John B Sanfilippo | Whole Earth vs. Real Good Food |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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