Correlation Between Bank Mandiri and United States
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and United States 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 United States 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 United States Cellular, you can compare the effects of market volatilities on Bank Mandiri and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and United States.
Diversification Opportunities for Bank Mandiri and United States
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and United is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and United States go up and down completely randomly.
Pair Corralation between Bank Mandiri and United States
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the United States. In addition to that, Bank Mandiri is 5.4 times more volatile than United States Cellular. It trades about -0.28 of its total potential returns per unit of risk. United States Cellular is currently generating about 0.12 per unit of volatility. If you would invest 2,240 in United States Cellular on August 24, 2024 and sell it today you would earn a total of 37.00 from holding United States Cellular or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank Mandiri Persero vs. United States Cellular
Performance |
| Timeline |
| Bank Mandiri Persero |
| United States Cellular |
Bank Mandiri and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and United States
The main advantage of trading using opposite Bank Mandiri and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' 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 |
| United States vs. United States Cellular | United States vs. United States Cellular | United States vs. Office Properties Income | United States vs. KKRS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |