Correlation Between Bank Mandiri and Great Elm
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Great Elm 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 Great Elm 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 Great Elm Capital, you can compare the effects of market volatilities on Bank Mandiri and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Great Elm.
Diversification Opportunities for Bank Mandiri and Great Elm
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Great is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Great Elm go up and down completely randomly.
Pair Corralation between Bank Mandiri and Great Elm
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 9.27 times more return on investment than Great Elm. However, Bank Mandiri is 9.27 times more volatile than Great Elm Capital. It trades about 0.02 of its potential returns per unit of risk. Great Elm Capital is currently generating about 0.06 per unit of risk. If you would invest 44.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would lose (1.00) from holding Bank Mandiri Persero or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.62% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Great Elm Capital
Performance |
| Timeline |
| Bank Mandiri Persero |
| Great Elm Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Bank Mandiri and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Great Elm
The main advantage of trading using opposite Bank Mandiri and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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