Correlation Between Bank Mandiri and CryptoStar Corp
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and CryptoStar Corp 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 CryptoStar Corp 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 CryptoStar Corp, you can compare the effects of market volatilities on Bank Mandiri and CryptoStar Corp 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 CryptoStar Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and CryptoStar Corp.
Diversification Opportunities for Bank Mandiri and CryptoStar Corp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and CryptoStar is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and CryptoStar Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryptoStar Corp 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 CryptoStar Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryptoStar Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and CryptoStar Corp go up and down completely randomly.
Pair Corralation between Bank Mandiri and CryptoStar Corp
Assuming the 90 days horizon Bank Mandiri is expected to generate 15.48 times less return on investment than CryptoStar Corp. But when comparing it to its historical volatility, Bank Mandiri Persero is 7.32 times less risky than CryptoStar Corp. It trades about 0.03 of its potential returns per unit of risk. CryptoStar Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.75 in CryptoStar Corp on August 24, 2024 and sell it today you would lose (0.40) from holding CryptoStar Corp or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. CryptoStar Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| CryptoStar Corp |
Bank Mandiri and CryptoStar Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and CryptoStar Corp
The main advantage of trading using opposite Bank Mandiri and CryptoStar Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, CryptoStar Corp 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 CryptoStar Corp will offset losses from the drop in CryptoStar Corp's long position.| Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group | Bank Mandiri vs. Bank Central Asia | Bank Mandiri vs. PSB Holdings |
| CryptoStar Corp vs. Morgan Stanley | CryptoStar Corp vs. Goldman Sachs Group | CryptoStar Corp vs. Charles Schwab Corp | CryptoStar Corp vs. Interactive Brokers Group |
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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