Correlation Between Bank Mandiri and Voip PalCom
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Voip PalCom 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 Voip PalCom 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 Voip PalCom, you can compare the effects of market volatilities on Bank Mandiri and Voip PalCom 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 Voip PalCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Voip PalCom.
Diversification Opportunities for Bank Mandiri and Voip PalCom
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Voip is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Voip PalCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voip PalCom 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 Voip PalCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voip PalCom has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Voip PalCom go up and down completely randomly.
Pair Corralation between Bank Mandiri and Voip PalCom
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.84 times more return on investment than Voip PalCom. However, Bank Mandiri Persero is 1.19 times less risky than Voip PalCom. It trades about -0.03 of its potential returns per unit of risk. Voip PalCom is currently generating about -0.05 per unit of risk. If you would invest 45.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would lose (2.00) from holding Bank Mandiri Persero or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Voip PalCom
Performance |
| Timeline |
| Bank Mandiri Persero |
| Voip PalCom |
Bank Mandiri and Voip PalCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Voip PalCom
The main advantage of trading using opposite Bank Mandiri and Voip PalCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Voip PalCom 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 Voip PalCom will offset losses from the drop in Voip PalCom's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Voip PalCom vs. Crexendo | Voip PalCom vs. FingerMotion | Voip PalCom vs. Tele2 AB | Voip PalCom vs. KORE Group Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |