Correlation Between Bank Mandiri and Avax Techs
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Avax Techs 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 Avax Techs 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 Avax Techs, you can compare the effects of market volatilities on Bank Mandiri and Avax Techs 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 Avax Techs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Avax Techs.
Diversification Opportunities for Bank Mandiri and Avax Techs
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Avax is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Avax Techs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avax Techs 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 Avax Techs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avax Techs has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Avax Techs go up and down completely randomly.
Pair Corralation between Bank Mandiri and Avax Techs
Assuming the 90 days horizon Bank Mandiri is expected to generate 318.09 times less return on investment than Avax Techs. But when comparing it to its historical volatility, Bank Mandiri Persero is 101.23 times less risky than Avax Techs. It trades about 0.07 of its potential returns per unit of risk. Avax Techs is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Avax Techs on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Avax Techs or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Avax Techs
Performance |
| Timeline |
| Bank Mandiri Persero |
| Avax Techs |
Bank Mandiri and Avax Techs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Avax Techs
The main advantage of trading using opposite Bank Mandiri and Avax Techs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Avax Techs 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 Avax Techs will offset losses from the drop in Avax Techs' long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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