Correlation Between Bank Mandiri and ECN Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and ECN Capital 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 ECN Capital 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 ECN Capital Corp, you can compare the effects of market volatilities on Bank Mandiri and ECN Capital 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 ECN Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and ECN Capital.
Diversification Opportunities for Bank Mandiri and ECN Capital
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ECN is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and ECN Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECN Capital 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 ECN Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECN Capital Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and ECN Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and ECN Capital
Assuming the 90 days horizon Bank Mandiri is expected to generate 3.23 times less return on investment than ECN Capital. But when comparing it to its historical volatility, Bank Mandiri Persero is 2.04 times less risky than ECN Capital. It trades about 0.01 of its potential returns per unit of risk. ECN Capital Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 200.00 in ECN Capital Corp on September 14, 2024 and sell it today you would earn a total of 3.00 from holding ECN Capital Corp or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 87.9% |
| Values | Daily Returns |
Bank Mandiri Persero vs. ECN Capital Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| ECN Capital Corp |
Bank Mandiri and ECN Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and ECN Capital
The main advantage of trading using opposite Bank Mandiri and ECN Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, ECN Capital 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 ECN Capital will offset losses from the drop in ECN Capital's long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition |
| ECN Capital vs. PennyMac Finl Svcs | ECN Capital vs. Velocity Financial Llc | ECN Capital vs. Encore Capital Group | ECN Capital vs. Greystone Housing Impact |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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