Correlation Between Bank Mandiri and Accor SA
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Accor SA 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 Accor SA 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 Accor SA, you can compare the effects of market volatilities on Bank Mandiri and Accor SA 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 Accor SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Accor SA.
Diversification Opportunities for Bank Mandiri and Accor SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Accor is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Accor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accor SA 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 Accor SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accor SA has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Accor SA go up and down completely randomly.
Pair Corralation between Bank Mandiri and Accor SA
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Accor SA. In addition to that, Bank Mandiri is 1.55 times more volatile than Accor SA. It trades about -0.08 of its total potential returns per unit of risk. Accor SA is currently generating about 0.08 per unit of volatility. If you would invest 4,160 in Accor SA on August 31, 2024 and sell it today you would earn a total of 233.00 from holding Accor SA or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Accor SA
Performance |
| Timeline |
| Bank Mandiri Persero |
| Accor SA |
Bank Mandiri and Accor SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Accor SA
The main advantage of trading using opposite Bank Mandiri and Accor SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Accor SA 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 Accor SA will offset losses from the drop in Accor SA's long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
| Accor SA vs. Hilton Worldwide Holdings | Accor SA vs. InterContinental Hotels Group | Accor SA vs. Marriott International | Accor SA vs. Choice Hotels International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |