Correlation Between Bank Mandiri and Worlds
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Worlds 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 Worlds 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 Worlds Inc, you can compare the effects of market volatilities on Bank Mandiri and Worlds 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 Worlds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Worlds.
Diversification Opportunities for Bank Mandiri and Worlds
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Worlds is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Worlds Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worlds Inc 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 Worlds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worlds Inc has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Worlds go up and down completely randomly.
Pair Corralation between Bank Mandiri and Worlds
Assuming the 90 days horizon Bank Mandiri is expected to generate 18.59 times less return on investment than Worlds. But when comparing it to its historical volatility, Bank Mandiri Persero is 5.78 times less risky than Worlds. It trades about 0.03 of its potential returns per unit of risk. Worlds Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.80 in Worlds Inc on September 4, 2024 and sell it today you would earn a total of 0.46 from holding Worlds Inc or generate 57.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.9% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Worlds Inc
Performance |
| Timeline |
| Bank Mandiri Persero |
| Worlds Inc |
Bank Mandiri and Worlds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Worlds
The main advantage of trading using opposite Bank Mandiri and Worlds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Worlds 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 Worlds will offset losses from the drop in Worlds' 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 |
| Worlds vs. Agora Inc | Worlds vs. Upland Software | Worlds vs. Hitek Global Ordinary | Worlds vs. CS Disco LLC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |