Correlation Between Bank Mandiri and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers, you can compare the effects of market volatilities on Bank Mandiri and Pyxis Tankers 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 Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Pyxis Tankers.
Diversification Opportunities for Bank Mandiri and Pyxis Tankers
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Pyxis is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers 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 Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Pyxis Tankers go up and down completely randomly.
Pair Corralation between Bank Mandiri and Pyxis Tankers
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 11.48 times more return on investment than Pyxis Tankers. However, Bank Mandiri is 11.48 times more volatile than Pyxis Tankers. It trades about 0.06 of its potential returns per unit of risk. Pyxis Tankers is currently generating about 0.03 per unit of risk. If you would invest 29.00 in Bank Mandiri Persero on September 2, 2024 and sell it today you would earn a total of 14.00 from holding Bank Mandiri Persero or generate 48.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.34% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Pyxis Tankers
Performance |
| Timeline |
| Bank Mandiri Persero |
| Pyxis Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Bank Mandiri and Pyxis Tankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Pyxis Tankers
The main advantage of trading using opposite Bank Mandiri and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Pyxis Tankers 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 Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Pyxis Tankers vs. FAT Brands | Pyxis Tankers vs. Fortress Biotech Pref | Pyxis Tankers vs. Medalist Diversified Reit | Pyxis Tankers vs. Air T Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |