Correlation Between Bank Mandiri and Element Nutritional
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Element Nutritional 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 Element Nutritional 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 Element Nutritional Sciences, you can compare the effects of market volatilities on Bank Mandiri and Element Nutritional 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 Element Nutritional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Element Nutritional.
Diversification Opportunities for Bank Mandiri and Element Nutritional
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Element is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Element Nutritional Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Nutritional 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 Element Nutritional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Nutritional has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Element Nutritional go up and down completely randomly.
Pair Corralation between Bank Mandiri and Element Nutritional
If you would invest 16.00 in Element Nutritional Sciences on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Element Nutritional Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Element Nutritional Sciences
Performance |
| Timeline |
| Bank Mandiri Persero |
| Element Nutritional |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Element Nutritional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Element Nutritional
The main advantage of trading using opposite Bank Mandiri and Element Nutritional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Element Nutritional 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 Element Nutritional will offset losses from the drop in Element Nutritional's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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