Correlation Between Bank Mandiri and CIRCOR International
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and CIRCOR International 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 CIRCOR International 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 CIRCOR International, you can compare the effects of market volatilities on Bank Mandiri and CIRCOR International 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 CIRCOR International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and CIRCOR International.
Diversification Opportunities for Bank Mandiri and CIRCOR International
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and CIRCOR is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and CIRCOR International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIRCOR International 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 CIRCOR International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIRCOR International has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and CIRCOR International go up and down completely randomly.
Pair Corralation between Bank Mandiri and CIRCOR International
If you would invest 5,585 in CIRCOR International on September 2, 2024 and sell it today you would earn a total of 0.00 from holding CIRCOR International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Bank Mandiri Persero vs. CIRCOR International
Performance |
| Timeline |
| Bank Mandiri Persero |
| CIRCOR International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and CIRCOR International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and CIRCOR International
The main advantage of trading using opposite Bank Mandiri and CIRCOR International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, CIRCOR International 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 CIRCOR International will offset losses from the drop in CIRCOR International's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| CIRCOR International vs. Helios Technologies | CIRCOR International vs. Enpro Industries | CIRCOR International vs. Omega Flex | CIRCOR International vs. Luxfer Holdings PLC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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