Correlation Between Bank Mandiri and PHP Ventures
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and PHP Ventures 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 PHP Ventures 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 PHP Ventures Acquisition, you can compare the effects of market volatilities on Bank Mandiri and PHP Ventures 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 PHP Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and PHP Ventures.
Diversification Opportunities for Bank Mandiri and PHP Ventures
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and PHP is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and PHP Ventures Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHP Ventures Acquisition 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 PHP Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHP Ventures Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and PHP Ventures go up and down completely randomly.
Pair Corralation between Bank Mandiri and PHP Ventures
If you would invest 38.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Bank Mandiri Persero or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bank Mandiri Persero vs. PHP Ventures Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| PHP Ventures Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and PHP Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and PHP Ventures
The main advantage of trading using opposite Bank Mandiri and PHP Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, PHP Ventures 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 PHP Ventures will offset losses from the drop in PHP Ventures' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| PHP Ventures vs. Patria Latin American | PHP Ventures vs. Futuretech II Acquisition | PHP Ventures vs. Qomolangma Acquisition 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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