Correlation Between Bank Mandiri and Aztec Land
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Aztec Land 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 Aztec Land 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 Aztec Land Comb, you can compare the effects of market volatilities on Bank Mandiri and Aztec Land 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 Aztec Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Aztec Land.
Diversification Opportunities for Bank Mandiri and Aztec Land
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Aztec is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Aztec Land Comb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aztec Land Comb 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 Aztec Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aztec Land Comb has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Aztec Land go up and down completely randomly.
Pair Corralation between Bank Mandiri and Aztec Land
Assuming the 90 days horizon Bank Mandiri is expected to generate 2.57 times less return on investment than Aztec Land. In addition to that, Bank Mandiri is 1.48 times more volatile than Aztec Land Comb. It trades about 0.14 of its total potential returns per unit of risk. Aztec Land Comb is currently generating about 0.52 per unit of volatility. If you would invest 83,000 in Aztec Land Comb on November 2, 2024 and sell it today you would earn a total of 11,999 from holding Aztec Land Comb or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Aztec Land Comb
Performance |
| Timeline |
| Bank Mandiri Persero |
| Aztec Land Comb |
Bank Mandiri and Aztec Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Aztec Land
The main advantage of trading using opposite Bank Mandiri and Aztec Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Aztec Land 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 Aztec Land will offset losses from the drop in Aztec Land's long position.| Bank Mandiri vs. First Hawaiian | Bank Mandiri vs. Central Pacific Financial | Bank Mandiri vs. Territorial Bancorp | Bank Mandiri vs. Comerica |
| Aztec Land vs. Pardee Resources Co | Aztec Land vs. Boswell J G | Aztec Land vs. Alaska Power Telephone | Aztec Land vs. Keweenaw Land Association |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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