Correlation Between Bank Mandiri and Dynavax Technologies
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Dynavax Technologies 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 Dynavax Technologies 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 Dynavax Technologies, you can compare the effects of market volatilities on Bank Mandiri and Dynavax Technologies 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 Dynavax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Dynavax Technologies.
Diversification Opportunities for Bank Mandiri and Dynavax Technologies
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Dynavax is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Dynavax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynavax Technologies 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 Dynavax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynavax Technologies has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Dynavax Technologies go up and down completely randomly.
Pair Corralation between Bank Mandiri and Dynavax Technologies
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.9 times more return on investment than Dynavax Technologies. However, Bank Mandiri Persero is 1.11 times less risky than Dynavax Technologies. It trades about 0.02 of its potential returns per unit of risk. Dynavax Technologies is currently generating about -0.01 per unit of risk. If you would invest 1,509 in Bank Mandiri Persero on August 26, 2024 and sell it today you would earn a total of 51.00 from holding Bank Mandiri Persero or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Dynavax Technologies
Performance |
| Timeline |
| Bank Mandiri Persero |
| Dynavax Technologies |
Bank Mandiri and Dynavax Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Dynavax Technologies
The main advantage of trading using opposite Bank Mandiri and Dynavax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Dynavax Technologies 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 Dynavax Technologies will offset losses from the drop in Dynavax Technologies' long position.| Bank Mandiri vs. PSB Holdings | Bank Mandiri vs. United Overseas Bank | Bank Mandiri vs. Turkiye Garanti Bankasi |
| Dynavax Technologies vs. Eliem Therapeutics | Dynavax Technologies vs. HCW Biologics | Dynavax Technologies vs. Scpharmaceuticals | Dynavax Technologies vs. Milestone Pharmaceuticals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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