Correlation Between Bank Mandiri and Aztec Minerals
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Aztec Minerals 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 Minerals 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 Minerals Corp, you can compare the effects of market volatilities on Bank Mandiri and Aztec Minerals 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 Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Aztec Minerals.
Diversification Opportunities for Bank Mandiri and Aztec Minerals
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Aztec is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Aztec Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aztec Minerals Corp 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 Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aztec Minerals Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Aztec Minerals go up and down completely randomly.
Pair Corralation between Bank Mandiri and Aztec Minerals
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Aztec Minerals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 3.87 times less risky than Aztec Minerals. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Aztec Minerals Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Aztec Minerals Corp on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Aztec Minerals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Aztec Minerals Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Aztec Minerals Corp |
Bank Mandiri and Aztec Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Aztec Minerals
The main advantage of trading using opposite Bank Mandiri and Aztec Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Aztec Minerals 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 Minerals will offset losses from the drop in Aztec Minerals' long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
| Aztec Minerals vs. Silver Spruce Resources | Aztec Minerals vs. Freegold Ventures Limited | Aztec Minerals vs. Bravada Gold | Aztec Minerals vs. Canada Rare Earth |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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