Correlation Between Bank Mandiri and Shawcor
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Shawcor 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 Shawcor 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 Shawcor, you can compare the effects of market volatilities on Bank Mandiri and Shawcor 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 Shawcor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Shawcor.
Diversification Opportunities for Bank Mandiri and Shawcor
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Shawcor is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Shawcor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shawcor 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 Shawcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shawcor has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Shawcor go up and down completely randomly.
Pair Corralation between Bank Mandiri and Shawcor
If you would invest 1,513 in Shawcor on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Shawcor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Shawcor
Performance |
| Timeline |
| Bank Mandiri Persero |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Shawcor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Shawcor
The main advantage of trading using opposite Bank Mandiri and Shawcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Shawcor 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 Shawcor will offset losses from the drop in Shawcor'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 |
| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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