Correlation Between Bank Mandiri and Atec
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Atec 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 Atec 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 Atec Inc, you can compare the effects of market volatilities on Bank Mandiri and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Atec.
Diversification Opportunities for Bank Mandiri and Atec
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Atec is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Atec go up and down completely randomly.
Pair Corralation between Bank Mandiri and Atec
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 8.31 times more return on investment than Atec. However, Bank Mandiri is 8.31 times more volatile than Atec Inc. It trades about 0.04 of its potential returns per unit of risk. Atec Inc is currently generating about 0.09 per unit of risk. If you would invest 1,488 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 123.00 from holding Bank Mandiri Persero or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Atec Inc
Performance |
| Timeline |
| Bank Mandiri Persero |
| Atec Inc |
Bank Mandiri and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Atec
The main advantage of trading using opposite Bank Mandiri and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Atec vs. GEN Restaurant Group, | Atec vs. Yum Brands | Atec vs. The Cheesecake Factory | Atec vs. Doubledown Interactive Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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