Correlation Between Bank Mandiri and TinOne Resources
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and TinOne 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 TinOne 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 TinOne Resources, you can compare the effects of market volatilities on Bank Mandiri and TinOne 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 TinOne Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and TinOne Resources.
Diversification Opportunities for Bank Mandiri and TinOne Resources
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and TinOne is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and TinOne Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TinOne 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 TinOne Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TinOne Resources has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and TinOne Resources go up and down completely randomly.
Pair Corralation between Bank Mandiri and TinOne Resources
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the TinOne Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 8.38 times less risky than TinOne Resources. The pink sheet trades about 0.0 of its potential returns per unit of risk. The TinOne Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7.78 in TinOne Resources on August 30, 2024 and sell it today you would lose (4.35) from holding TinOne Resources or give up 55.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank Mandiri Persero vs. TinOne Resources
Performance |
| Timeline |
| Bank Mandiri Persero |
| TinOne Resources |
Bank Mandiri and TinOne Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and TinOne Resources
The main advantage of trading using opposite Bank Mandiri and TinOne Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, TinOne 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 TinOne Resources will offset losses from the drop in TinOne Resources' long position.The idea behind Bank Mandiri Persero and TinOne Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| TinOne Resources vs. Vertiv Holdings Co | TinOne Resources vs. Nasdaq Inc | TinOne Resources vs. McDonalds | TinOne Resources vs. Walmart |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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