Correlation Between Bank Mandiri and China Galaxy
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and China Galaxy 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 China Galaxy 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 China Galaxy Securities, you can compare the effects of market volatilities on Bank Mandiri and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and China Galaxy.
Diversification Opportunities for Bank Mandiri and China Galaxy
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and China is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and China Galaxy go up and down completely randomly.
Pair Corralation between Bank Mandiri and China Galaxy
If you would invest 1,326 in China Galaxy Securities on August 31, 2024 and sell it today you would earn a total of 0.00 from holding China Galaxy Securities or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Mandiri Persero vs. China Galaxy Securities
Performance |
| Timeline |
| Bank Mandiri Persero |
| China Galaxy Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and China Galaxy
The main advantage of trading using opposite Bank Mandiri and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy'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 |
| China Galaxy vs. Evercore Partners | China Galaxy vs. Lazard | China Galaxy vs. Moelis Co | China Galaxy vs. PJT Partners |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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