Correlation Between Bank Mandiri and Amrica Mvil
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Amrica Mvil 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 Amrica Mvil 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 Amrica Mvil SAB, you can compare the effects of market volatilities on Bank Mandiri and Amrica Mvil 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 Amrica Mvil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Amrica Mvil.
Diversification Opportunities for Bank Mandiri and Amrica Mvil
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Amrica is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Amrica Mvil SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amrica Mvil SAB 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 Amrica Mvil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amrica Mvil SAB has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Amrica Mvil go up and down completely randomly.
Pair Corralation between Bank Mandiri and Amrica Mvil
If you would invest 108.00 in Amrica Mvil SAB on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Amrica Mvil SAB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Amrica Mvil SAB
Performance |
| Timeline |
| Bank Mandiri Persero |
| Amrica Mvil SAB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Amrica Mvil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Amrica Mvil
The main advantage of trading using opposite Bank Mandiri and Amrica Mvil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Amrica Mvil 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 Amrica Mvil will offset losses from the drop in Amrica Mvil's long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition |
| Amrica Mvil vs. Yum Brands | Amrica Mvil vs. The Cheesecake Factory | Amrica Mvil vs. Kaltura | Amrica Mvil vs. Dine Brands Global |
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.
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