Correlation Between Bank Mandiri and Knightswan Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Knightswan Acquisition 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 Knightswan Acquisition 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 Knightswan Acquisition Corp, you can compare the effects of market volatilities on Bank Mandiri and Knightswan Acquisition 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 Knightswan Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Knightswan Acquisition.
Diversification Opportunities for Bank Mandiri and Knightswan Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Knightswan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Knightswan Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightswan Acquisition 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 Knightswan Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightswan Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Knightswan Acquisition go up and down completely randomly.
Pair Corralation between Bank Mandiri and Knightswan Acquisition
If you would invest 33.00 in Bank Mandiri Persero on January 11, 2025 and sell it today you would lose (4.00) from holding Bank Mandiri Persero or give up 12.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Knightswan Acquisition Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Knightswan Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Mandiri and Knightswan Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Knightswan Acquisition
The main advantage of trading using opposite Bank Mandiri and Knightswan Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Knightswan Acquisition 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 Knightswan Acquisition will offset losses from the drop in Knightswan Acquisition's long position.| Bank Mandiri vs. Banco Bradesco SA | Bank Mandiri vs. Itau Unibanco Banco | Bank Mandiri vs. Lloyds Banking Group | Bank Mandiri vs. Deutsche Bank AG |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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