Correlation Between Bank Mandiri and Ault Alliance
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Ault Alliance 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 Ault Alliance 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 Ault Alliance, you can compare the effects of market volatilities on Bank Mandiri and Ault Alliance 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 Ault Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Ault Alliance.
Diversification Opportunities for Bank Mandiri and Ault Alliance
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Ault is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Ault Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Alliance 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 Ault Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Alliance has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Ault Alliance go up and down completely randomly.
Pair Corralation between Bank Mandiri and Ault Alliance
If you would invest 21.00 in Ault Alliance on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Ault Alliance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Ault Alliance
Performance |
| Timeline |
| Bank Mandiri Persero |
| Ault Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Bank Mandiri and Ault Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Ault Alliance
The main advantage of trading using opposite Bank Mandiri and Ault Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Ault Alliance 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 Ault Alliance will offset losses from the drop in Ault Alliance'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 |
| Ault Alliance vs. Lion One Metals | Ault Alliance vs. Uranium Energy Corp | Ault Alliance vs. Aerofoam Metals | Ault Alliance vs. Chester Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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