Correlation Between Bank Mandiri and Blueriver Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Blueriver Acquisition 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 Blueriver Acquisition 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 Blueriver Acquisition Corp, you can compare the effects of market volatilities on Bank Mandiri and Blueriver Acquisition 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 Blueriver Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Blueriver Acquisition.
Diversification Opportunities for Bank Mandiri and Blueriver Acquisition
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Blueriver is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Blueriver Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueriver Acquisition 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 Blueriver Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueriver Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Blueriver Acquisition go up and down completely randomly.
Pair Corralation between Bank Mandiri and Blueriver Acquisition
If you would invest 1,055 in Blueriver Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Blueriver Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Blueriver Acquisition Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Blueriver Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Blueriver Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Blueriver Acquisition
The main advantage of trading using opposite Bank Mandiri and Blueriver Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Blueriver Acquisition 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 Blueriver Acquisition will offset losses from the drop in Blueriver Acquisition's 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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