Correlation Between Bank Mandiri and Itau CorpBanca
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Itau CorpBanca 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 Itau CorpBanca 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 Itau CorpBanca ADR, you can compare the effects of market volatilities on Bank Mandiri and Itau CorpBanca 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 Itau CorpBanca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Itau CorpBanca.
Diversification Opportunities for Bank Mandiri and Itau CorpBanca
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Itau is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Itau CorpBanca ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itau CorpBanca ADR 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 Itau CorpBanca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itau CorpBanca ADR has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Itau CorpBanca go up and down completely randomly.
Pair Corralation between Bank Mandiri and Itau CorpBanca
If you would invest (100.00) in Itau CorpBanca ADR on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Itau CorpBanca ADR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Itau CorpBanca ADR
Performance |
| Timeline |
| Bank Mandiri Persero |
| Itau CorpBanca ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Mandiri and Itau CorpBanca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Itau CorpBanca
The main advantage of trading using opposite Bank Mandiri and Itau CorpBanca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Itau CorpBanca 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 Itau CorpBanca will offset losses from the drop in Itau CorpBanca's long position.| Bank Mandiri vs. HDFC Bank Limited | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. Fifth Third Bancorp |
| Itau CorpBanca vs. Banco De Chile | Itau CorpBanca vs. Banco Santander Brasil | Itau CorpBanca vs. CrossFirst Bankshares | Itau CorpBanca vs. Banco Bradesco SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |