Correlation Between Bank Mandiri and Okapi Resources
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Okapi Resources 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 Okapi Resources 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 Okapi Resources Limited, you can compare the effects of market volatilities on Bank Mandiri and Okapi Resources 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 Okapi Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Okapi Resources.
Diversification Opportunities for Bank Mandiri and Okapi Resources
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Okapi is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Okapi Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okapi Resources 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 Okapi Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okapi Resources has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Okapi Resources go up and down completely randomly.
Pair Corralation between Bank Mandiri and Okapi Resources
Assuming the 90 days horizon Bank Mandiri is expected to generate 1.44 times less return on investment than Okapi Resources. But when comparing it to its historical volatility, Bank Mandiri Persero is 1.68 times less risky than Okapi Resources. It trades about 0.06 of its potential returns per unit of risk. Okapi Resources Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Okapi Resources Limited on August 26, 2024 and sell it today you would lose (13.90) from holding Okapi Resources Limited or give up 63.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.03% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Okapi Resources Limited
Performance |
| Timeline |
| Bank Mandiri Persero |
| Okapi Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Okapi Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Okapi Resources
The main advantage of trading using opposite Bank Mandiri and Okapi Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Okapi Resources 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 Okapi Resources will offset losses from the drop in Okapi Resources' long position.| Bank Mandiri vs. Standard Bank Group | Bank Mandiri vs. PSB Holdings | Bank Mandiri vs. United Overseas Bank | Bank Mandiri vs. Turkiye Garanti Bankasi |
| Okapi Resources vs. Blue Sky Uranium | Okapi Resources vs. Purepoint Uranium Group | Okapi Resources vs. Bannerman Resources | Okapi Resources vs. Baselode Energy Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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