Correlation Between Bank Mandiri and Mineral Mountain
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Mineral Mountain 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 Mineral Mountain 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 Mineral Mountain Mining, you can compare the effects of market volatilities on Bank Mandiri and Mineral Mountain 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 Mineral Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Mineral Mountain.
Diversification Opportunities for Bank Mandiri and Mineral Mountain
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Mineral is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Mineral Mountain Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mineral Mountain Mining 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 Mineral Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mineral Mountain Mining has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Mineral Mountain go up and down completely randomly.
Pair Corralation between Bank Mandiri and Mineral Mountain
If you would invest 0.03 in Mineral Mountain Mining on September 2, 2024 and sell it today you would lose (0.01) from holding Mineral Mountain Mining or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Mineral Mountain Mining
Performance |
| Timeline |
| Bank Mandiri Persero |
| Mineral Mountain Mining |
Bank Mandiri and Mineral Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Mineral Mountain
The main advantage of trading using opposite Bank Mandiri and Mineral Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Mineral Mountain 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 Mineral Mountain will offset losses from the drop in Mineral Mountain's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Mineral Mountain vs. Ryan Specialty Group | Mineral Mountain vs. Fidelity National Financial | Mineral Mountain vs. Assurant | Mineral Mountain vs. First American |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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