Correlation Between Bank Mandiri and Banner Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Banner 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 Banner 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 Banner Acquisition Corp, you can compare the effects of market volatilities on Bank Mandiri and Banner 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 Banner Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Banner Acquisition.
Diversification Opportunities for Bank Mandiri and Banner Acquisition
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Banner is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Banner Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banner Acquisition 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 Banner Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banner Acquisition Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Banner Acquisition go up and down completely randomly.
Pair Corralation between Bank Mandiri and Banner Acquisition
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 18.85 times more return on investment than Banner Acquisition. However, Bank Mandiri is 18.85 times more volatile than Banner Acquisition Corp. It trades about 0.04 of its potential returns per unit of risk. Banner Acquisition Corp is currently generating about 0.26 per unit of risk. If you would invest 1,209 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 402.00 from holding Bank Mandiri Persero or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 21.41% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Banner Acquisition Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Banner Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Banner Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Banner Acquisition
The main advantage of trading using opposite Bank Mandiri and Banner Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Banner 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 Banner Acquisition will offset losses from the drop in Banner Acquisition'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 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |