Correlation Between Bank Mandiri and Keros Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Keros Therapeutics 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 Keros Therapeutics 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 Keros Therapeutics, you can compare the effects of market volatilities on Bank Mandiri and Keros Therapeutics 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 Keros Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Keros Therapeutics.
Diversification Opportunities for Bank Mandiri and Keros Therapeutics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Keros is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Keros Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keros Therapeutics 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 Keros Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keros Therapeutics has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Keros Therapeutics go up and down completely randomly.
Pair Corralation between Bank Mandiri and Keros Therapeutics
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Keros Therapeutics. In addition to that, Bank Mandiri is 1.1 times more volatile than Keros Therapeutics. It trades about -0.28 of its total potential returns per unit of risk. Keros Therapeutics is currently generating about -0.09 per unit of volatility. If you would invest 5,799 in Keros Therapeutics on August 24, 2024 and sell it today you would lose (415.00) from holding Keros Therapeutics or give up 7.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Keros Therapeutics
Performance |
| Timeline |
| Bank Mandiri Persero |
| Keros Therapeutics |
Bank Mandiri and Keros Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Keros Therapeutics
The main advantage of trading using opposite Bank Mandiri and Keros Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Keros Therapeutics 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 Keros Therapeutics will offset losses from the drop in Keros Therapeutics' 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 |
| Keros Therapeutics vs. Ideaya Biosciences | Keros Therapeutics vs. AnaptysBio | Keros Therapeutics vs. MeiraGTx Holdings PLC | Keros Therapeutics vs. Janux Therapeutics |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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