Correlation Between Bank Mandiri and BTC Digital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and BTC 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 BTC 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 BTC Digital, you can compare the effects of market volatilities on Bank Mandiri and BTC 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 BTC Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and BTC Digital.
Diversification Opportunities for Bank Mandiri and BTC Digital
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and BTC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and BTC Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Digital 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 BTC Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Digital has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and BTC Digital go up and down completely randomly.
Pair Corralation between Bank Mandiri and BTC Digital
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the BTC Digital. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 38.75 times less risky than BTC Digital. The pink sheet trades about -0.36 of its potential returns per unit of risk. The BTC Digital is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 161.00 in BTC Digital on August 24, 2024 and sell it today you would earn a total of 1,624 from holding BTC Digital or generate 1008.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank Mandiri Persero vs. BTC Digital
Performance |
| Timeline |
| Bank Mandiri Persero |
| BTC Digital |
Bank Mandiri and BTC Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and BTC Digital
The main advantage of trading using opposite Bank Mandiri and BTC Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, BTC 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 BTC Digital will offset losses from the drop in BTC Digital's long position.| Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group | Bank Mandiri vs. Bank Central Asia | Bank Mandiri vs. PSB Holdings |
| BTC Digital vs. Lifevantage | BTC Digital vs. Balchem | BTC Digital vs. Western Acquisition Ventures | BTC Digital vs. CF Industries Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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