Correlation Between Bank Mandiri and Gol Linhas
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Gol Linhas 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 Gol Linhas 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 Gol Linhas Aereas, you can compare the effects of market volatilities on Bank Mandiri and Gol Linhas 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 Gol Linhas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Gol Linhas.
Diversification Opportunities for Bank Mandiri and Gol Linhas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Gol is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Gol Linhas Aereas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gol Linhas Aereas 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 Gol Linhas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gol Linhas Aereas has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Gol Linhas go up and down completely randomly.
Pair Corralation between Bank Mandiri and Gol Linhas
If you would invest 438.00 in Gol Linhas Aereas on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Gol Linhas Aereas or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Gol Linhas Aereas
Performance |
| Timeline |
| Bank Mandiri Persero |
| Gol Linhas Aereas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Gol Linhas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Gol Linhas
The main advantage of trading using opposite Bank Mandiri and Gol Linhas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Gol Linhas 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 Gol Linhas will offset losses from the drop in Gol Linhas' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Gol Linhas vs. Azul SA | Gol Linhas vs. Air France KLM | Gol Linhas vs. Copa Holdings SA | Gol Linhas vs. International Consolidated Airlines |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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