Correlation Between Bank Mandiri and Ashford
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Ashford 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 Ashford 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 Ashford, you can compare the effects of market volatilities on Bank Mandiri and Ashford 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 Ashford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Ashford.
Diversification Opportunities for Bank Mandiri and Ashford
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Ashford is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Ashford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashford 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 Ashford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashford has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Ashford go up and down completely randomly.
Pair Corralation between Bank Mandiri and Ashford
Assuming the 90 days horizon Bank Mandiri is expected to generate 9.17 times less return on investment than Ashford. But when comparing it to its historical volatility, Bank Mandiri Persero is 5.17 times less risky than Ashford. It trades about 0.02 of its potential returns per unit of risk. Ashford is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 467.00 in Ashford on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Ashford or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 64.52% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Ashford
Performance |
| Timeline |
| Bank Mandiri Persero |
| Ashford |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Ashford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Ashford
The main advantage of trading using opposite Bank Mandiri and Ashford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Ashford 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 Ashford will offset losses from the drop in Ashford's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Ashford vs. Braemar Hotel Resorts | Ashford vs. Conifer Holding | Ashford vs. Citizens Community Bancorp | Ashford vs. AstroNova |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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