Correlation Between Bank Mandiri and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and CureVac NV 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 CureVac NV 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 CureVac NV, you can compare the effects of market volatilities on Bank Mandiri and CureVac NV 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 CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and CureVac NV.
Diversification Opportunities for Bank Mandiri and CureVac NV
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and CureVac is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV 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 CureVac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CureVac NV has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and CureVac NV go up and down completely randomly.
Pair Corralation between Bank Mandiri and CureVac NV
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the CureVac NV. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.8 times less risky than CureVac NV. The pink sheet trades about -0.28 of its potential returns per unit of risk. The CureVac NV is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 283.00 in CureVac NV on August 28, 2024 and sell it today you would lose (6.00) from holding CureVac NV or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. CureVac NV
Performance |
| Timeline |
| Bank Mandiri Persero |
| CureVac NV |
Bank Mandiri and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and CureVac NV
The main advantage of trading using opposite Bank Mandiri and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, CureVac NV 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 CureVac NV will offset losses from the drop in CureVac NV's long position.The idea behind Bank Mandiri Persero and CureVac NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CureVac NV vs. Merit Medical Systems | CureVac NV vs. SmartStop Self Storage | CureVac NV vs. Cadence Design Systems | CureVac NV vs. Microbot Medical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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