Correlation Between Bank Mandiri and Galaxy Digital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Galaxy Digital 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 Galaxy Digital 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 Galaxy Digital Holdings, you can compare the effects of market volatilities on Bank Mandiri and Galaxy Digital 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 Galaxy Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Galaxy Digital.
Diversification Opportunities for Bank Mandiri and Galaxy Digital
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Galaxy is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Galaxy Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Digital Holdings 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 Galaxy Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Digital Holdings has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Galaxy Digital go up and down completely randomly.
Pair Corralation between Bank Mandiri and Galaxy Digital
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Galaxy Digital. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 3.43 times less risky than Galaxy Digital. The pink sheet trades about -0.16 of its potential returns per unit of risk. The Galaxy Digital Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,360 in Galaxy Digital Holdings on August 31, 2024 and sell it today you would earn a total of 450.00 from holding Galaxy Digital Holdings or generate 33.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Galaxy Digital Holdings
Performance |
| Timeline |
| Bank Mandiri Persero |
| Galaxy Digital Holdings |
Bank Mandiri and Galaxy Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Galaxy Digital
The main advantage of trading using opposite Bank Mandiri and Galaxy Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Galaxy Digital 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 Galaxy Digital will offset losses from the drop in Galaxy Digital's long position.| Bank Mandiri vs. Bank Mandiri Persero | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Kasikornbank Public Co | Bank Mandiri vs. Delhi Bank Corp |
| Galaxy Digital vs. DeFi Technologies | Galaxy Digital vs. Argo Blockchain PLC | Galaxy Digital vs. DigiMax Global | Galaxy Digital vs. BIG Blockchain Intelligence |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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