Correlation Between Bank Mandiri and Viper Networks
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Viper Networks 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 Viper Networks 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 Viper Networks, you can compare the effects of market volatilities on Bank Mandiri and Viper Networks 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 Viper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Viper Networks.
Diversification Opportunities for Bank Mandiri and Viper Networks
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Viper is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Viper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viper Networks 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 Viper Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viper Networks has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Viper Networks go up and down completely randomly.
Pair Corralation between Bank Mandiri and Viper Networks
Assuming the 90 days horizon Bank Mandiri is expected to generate 1.63 times less return on investment than Viper Networks. But when comparing it to its historical volatility, Bank Mandiri Persero is 1.25 times less risky than Viper Networks. It trades about 0.06 of its potential returns per unit of risk. Viper Networks is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.06 in Viper Networks on September 3, 2024 and sell it today you would lose (0.03) from holding Viper Networks or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.71% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Viper Networks
Performance |
| Timeline |
| Bank Mandiri Persero |
| Viper Networks |
Bank Mandiri and Viper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Viper Networks
The main advantage of trading using opposite Bank Mandiri and Viper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Viper Networks 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 Viper Networks will offset losses from the drop in Viper Networks' 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 |
| Viper Networks vs. KULR Technology Group | Viper Networks vs. Ouster Inc | Viper Networks vs. MicroCloud Hologram | Viper Networks vs. Kopin |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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