Correlation Between Bank Mandiri and Invivyd
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Invivyd 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 Invivyd 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 Invivyd, you can compare the effects of market volatilities on Bank Mandiri and Invivyd 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 Invivyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Invivyd.
Diversification Opportunities for Bank Mandiri and Invivyd
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Invivyd is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd 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 Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Invivyd go up and down completely randomly.
Pair Corralation between Bank Mandiri and Invivyd
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.57 times more return on investment than Invivyd. However, Bank Mandiri Persero is 1.76 times less risky than Invivyd. It trades about -0.07 of its potential returns per unit of risk. Invivyd is currently generating about -0.09 per unit of risk. If you would invest 36.00 in Bank Mandiri Persero on November 3, 2024 and sell it today you would lose (3.00) from holding Bank Mandiri Persero or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Invivyd
Performance |
| Timeline |
| Bank Mandiri Persero |
| Invivyd |
Bank Mandiri and Invivyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Invivyd
The main advantage of trading using opposite Bank Mandiri and Invivyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Invivyd 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 Invivyd will offset losses from the drop in Invivyd'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 |
| Invivyd vs. Recursion Pharmaceuticals | Invivyd vs. Atea Pharmaceuticals | Invivyd vs. Unity Biotechnology | Invivyd vs. Regenxbio |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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