Correlation Between Bank Mandiri and Perception Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Perception Capital 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 Perception Capital 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 Perception Capital Corp, you can compare the effects of market volatilities on Bank Mandiri and Perception Capital 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 Perception Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Perception Capital.
Diversification Opportunities for Bank Mandiri and Perception Capital
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Perception is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Perception Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perception Capital Corp 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 Perception Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perception Capital Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Perception Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and Perception Capital
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 10.08 times more return on investment than Perception Capital. However, Bank Mandiri is 10.08 times more volatile than Perception Capital Corp. It trades about 0.06 of its potential returns per unit of risk. Perception Capital Corp is currently generating about 0.05 per unit of risk. If you would invest 29.00 in Bank Mandiri Persero on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Bank Mandiri Persero or generate 51.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 34.3% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Perception Capital Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Perception Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Perception Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Perception Capital
The main advantage of trading using opposite Bank Mandiri and Perception Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Perception Capital 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 Perception Capital will offset losses from the drop in Perception Capital'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
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