Correlation Between Bank Mandiri and Chongqing Rural
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Chongqing Rural 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 Chongqing Rural 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 Chongqing Rural Commercial, you can compare the effects of market volatilities on Bank Mandiri and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Chongqing Rural.
Diversification Opportunities for Bank Mandiri and Chongqing Rural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Chongqing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Chongqing Rural go up and down completely randomly.
Pair Corralation between Bank Mandiri and Chongqing Rural
If you would invest 1,290 in Bank Mandiri Persero on October 1, 2024 and sell it today you would earn a total of 108.00 from holding Bank Mandiri Persero or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Chongqing Rural Commercial
Performance |
| Timeline |
| Bank Mandiri Persero |
| Chongqing Rural Comm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Chongqing Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Chongqing Rural
The main advantage of trading using opposite Bank Mandiri and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural's long position.| Bank Mandiri vs. Banco Bradesco SA | Bank Mandiri vs. Itau Unibanco Banco | Bank Mandiri vs. Deutsche Bank AG | Bank Mandiri vs. Banco Santander Brasil |
| Chongqing Rural vs. Everus Construction Group | Chongqing Rural vs. Jeld Wen Holding | Chongqing Rural vs. Integrated Drilling Equipment | Chongqing Rural vs. Tyson Foods |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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