Correlation Between Bank Mandiri and Cowen
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Cowen 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 Cowen 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 Cowen Group, you can compare the effects of market volatilities on Bank Mandiri and Cowen 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 Cowen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Cowen.
Diversification Opportunities for Bank Mandiri and Cowen
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Cowen is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Cowen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowen Group 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 Cowen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowen Group has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Cowen go up and down completely randomly.
Pair Corralation between Bank Mandiri and Cowen
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 18.76 times more return on investment than Cowen. However, Bank Mandiri is 18.76 times more volatile than Cowen Group. It trades about 0.04 of its potential returns per unit of risk. Cowen Group is currently generating about 0.28 per unit of risk. If you would invest 1,201 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 363.00 from holding Bank Mandiri Persero or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 10.91% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Cowen Group
Performance |
| Timeline |
| Bank Mandiri Persero |
| Cowen Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Cowen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Cowen
The main advantage of trading using opposite Bank Mandiri and Cowen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Cowen 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 Cowen will offset losses from the drop in Cowen'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 |
| Cowen vs. Ihuman Inc | Cowen vs. Where Food Comes | Cowen vs. Cadence Design Systems | Cowen vs. Zane Interactive Publishing |
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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