Correlation Between Bank Mandiri and First Robinson
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and First Robinson 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 First Robinson 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 First Robinson Financial, you can compare the effects of market volatilities on Bank Mandiri and First Robinson 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 First Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and First Robinson.
Diversification Opportunities for Bank Mandiri and First Robinson
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and First is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and First Robinson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Robinson Financial 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 First Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Robinson Financial has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and First Robinson go up and down completely randomly.
Pair Corralation between Bank Mandiri and First Robinson
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 2.45 times more return on investment than First Robinson. However, Bank Mandiri is 2.45 times more volatile than First Robinson Financial. It trades about 0.05 of its potential returns per unit of risk. First Robinson Financial is currently generating about 0.06 per unit of risk. If you would invest 37.00 in Bank Mandiri Persero on September 3, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. First Robinson Financial
Performance |
| Timeline |
| Bank Mandiri Persero |
| First Robinson Financial |
Bank Mandiri and First Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and First Robinson
The main advantage of trading using opposite Bank Mandiri and First Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, First Robinson 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 First Robinson will offset losses from the drop in First Robinson'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 |
| First Robinson vs. PGE Corp | First Robinson vs. Archrock | First Robinson vs. Aris Water Solutions | First Robinson vs. Paiute Oil Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |