Correlation Between Bank Mandiri and ConvaTec Group
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and ConvaTec Group 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 ConvaTec Group 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 ConvaTec Group Plc, you can compare the effects of market volatilities on Bank Mandiri and ConvaTec Group 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 ConvaTec Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and ConvaTec Group.
Diversification Opportunities for Bank Mandiri and ConvaTec Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and ConvaTec is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and ConvaTec Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConvaTec Group Plc 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 ConvaTec Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConvaTec Group Plc has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and ConvaTec Group go up and down completely randomly.
Pair Corralation between Bank Mandiri and ConvaTec Group
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the ConvaTec Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 2.9 times less risky than ConvaTec Group. The pink sheet trades about -0.11 of its potential returns per unit of risk. The ConvaTec Group Plc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 271.00 in ConvaTec Group Plc on September 1, 2024 and sell it today you would earn a total of 24.00 from holding ConvaTec Group Plc or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank Mandiri Persero vs. ConvaTec Group Plc
Performance |
| Timeline |
| Bank Mandiri Persero |
| ConvaTec Group Plc |
Bank Mandiri and ConvaTec Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and ConvaTec Group
The main advantage of trading using opposite Bank Mandiri and ConvaTec Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, ConvaTec Group 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 ConvaTec Group will offset losses from the drop in ConvaTec Group's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| ConvaTec Group vs. Usio Inc | ConvaTec Group vs. Analog Devices | ConvaTec Group vs. Q2 Holdings | ConvaTec Group vs. Evertz Technologies Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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