Correlation Between Bank Mandiri and Arcelormittal
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Arcelormittal 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 Arcelormittal 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 Arcelormittal, you can compare the effects of market volatilities on Bank Mandiri and Arcelormittal 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 Arcelormittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Arcelormittal.
Diversification Opportunities for Bank Mandiri and Arcelormittal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Arcelormittal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Arcelormittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelormittal 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 Arcelormittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelormittal has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Arcelormittal go up and down completely randomly.
Pair Corralation between Bank Mandiri and Arcelormittal
If you would invest 6,183 in Arcelormittal on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Arcelormittal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Arcelormittal
Performance |
| Timeline |
| Bank Mandiri Persero |
| Arcelormittal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Arcelormittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Arcelormittal
The main advantage of trading using opposite Bank Mandiri and Arcelormittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Arcelormittal 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 Arcelormittal will offset losses from the drop in Arcelormittal's long position.| Bank Mandiri vs. PSB Holdings | Bank Mandiri vs. United Overseas Bank | Bank Mandiri vs. Turkiye Garanti Bankasi |
| Arcelormittal vs. Affiliated Managers Group | Arcelormittal vs. Maiden Holdings North | Arcelormittal vs. Credit Enhanced Corts | Arcelormittal vs. Affiliated Managers Group, |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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