Correlation Between Bank Mandiri and WRIT Media
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and WRIT Media 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 WRIT Media 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 WRIT Media Group, you can compare the effects of market volatilities on Bank Mandiri and WRIT Media 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 WRIT Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and WRIT Media.
Diversification Opportunities for Bank Mandiri and WRIT Media
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and WRIT is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and WRIT Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WRIT Media Group 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 WRIT Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WRIT Media Group has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and WRIT Media go up and down completely randomly.
Pair Corralation between Bank Mandiri and WRIT Media
Assuming the 90 days horizon Bank Mandiri is expected to generate 5.17 times less return on investment than WRIT Media. But when comparing it to its historical volatility, Bank Mandiri Persero is 4.22 times less risky than WRIT Media. It trades about 0.04 of its potential returns per unit of risk. WRIT Media Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.80 in WRIT Media Group on September 2, 2024 and sell it today you would lose (0.62) from holding WRIT Media Group or give up 77.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.4% |
| Values | Daily Returns |
Bank Mandiri Persero vs. WRIT Media Group
Performance |
| Timeline |
| Bank Mandiri Persero |
| WRIT Media Group |
Bank Mandiri and WRIT Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and WRIT Media
The main advantage of trading using opposite Bank Mandiri and WRIT Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, WRIT Media 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 WRIT Media will offset losses from the drop in WRIT Media's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| WRIT Media vs. All For One | WRIT Media vs. News Corp A | WRIT Media vs. Fox Corp Class | WRIT Media vs. Warner Bros Discovery |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |