Correlation Between Bank Mandiri and EF Hutton
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and EF Hutton 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 EF Hutton 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 EF Hutton Acquisition, you can compare the effects of market volatilities on Bank Mandiri and EF Hutton 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 EF Hutton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and EF Hutton.
Diversification Opportunities for Bank Mandiri and EF Hutton
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and EFHT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and EF Hutton Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EF Hutton Acquisition 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 EF Hutton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EF Hutton Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and EF Hutton go up and down completely randomly.
Pair Corralation between Bank Mandiri and EF Hutton
If you would invest (100.00) in EF Hutton Acquisition on November 28, 2024 and sell it today you would earn a total of 100.00 from holding EF Hutton Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. EF Hutton Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| EF Hutton Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Mandiri and EF Hutton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and EF Hutton
The main advantage of trading using opposite Bank Mandiri and EF Hutton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, EF Hutton 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 EF Hutton will offset losses from the drop in EF Hutton's long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |