Correlation Between Bank Mandiri and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Lixte Biotechnology 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 Lixte Biotechnology 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 Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Bank Mandiri and Lixte Biotechnology 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 Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Lixte Biotechnology.
Diversification Opportunities for Bank Mandiri and Lixte Biotechnology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Lixte is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology 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 Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Bank Mandiri and Lixte Biotechnology
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Lixte Biotechnology. In addition to that, Bank Mandiri is 1.13 times more volatile than Lixte Biotechnology Holdings. It trades about -0.07 of its total potential returns per unit of risk. Lixte Biotechnology Holdings is currently generating about 0.15 per unit of volatility. If you would invest 222.00 in Lixte Biotechnology Holdings on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Lixte Biotechnology Holdings or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Bank Mandiri Persero |
| Lixte Biotechnology |
Bank Mandiri and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Lixte Biotechnology
The main advantage of trading using opposite Bank Mandiri and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology'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 |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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