Correlation Between Bank Mandiri and Biophytis
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Biophytis 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 Biophytis 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 Biophytis, you can compare the effects of market volatilities on Bank Mandiri and Biophytis 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 Biophytis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Biophytis.
Diversification Opportunities for Bank Mandiri and Biophytis
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Biophytis is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Biophytis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biophytis 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 Biophytis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biophytis has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Biophytis go up and down completely randomly.
Pair Corralation between Bank Mandiri and Biophytis
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.24 times more return on investment than Biophytis. However, Bank Mandiri Persero is 4.14 times less risky than Biophytis. It trades about 0.01 of its potential returns per unit of risk. Biophytis is currently generating about -0.08 per unit of risk. If you would invest 1,541 in Bank Mandiri Persero on September 14, 2024 and sell it today you would earn a total of 28.00 from holding Bank Mandiri Persero or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 53.23% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Biophytis
Performance |
| Timeline |
| Bank Mandiri Persero |
| Biophytis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Biophytis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Biophytis
The main advantage of trading using opposite Bank Mandiri and Biophytis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Biophytis 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 Biophytis will offset losses from the drop in Biophytis' long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition |
| Biophytis vs. NRx Pharmaceuticals | Biophytis vs. NRX Pharmaceuticals | Biophytis vs. Akari Therapeutics PLC | Biophytis vs. Armata Pharmaceuticals |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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