Correlation Between Bank Mandiri and Fat Projects
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Fat Projects 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 Fat Projects 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 Fat Projects Acquisition, you can compare the effects of market volatilities on Bank Mandiri and Fat Projects 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 Fat Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Fat Projects.
Diversification Opportunities for Bank Mandiri and Fat Projects
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Fat is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Fat Projects Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fat Projects 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 Fat Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fat Projects Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Fat Projects go up and down completely randomly.
Pair Corralation between Bank Mandiri and Fat Projects
If you would invest 1,089 in Fat Projects Acquisition on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Fat Projects Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Fat Projects Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| Fat Projects Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Fat Projects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Fat Projects
The main advantage of trading using opposite Bank Mandiri and Fat Projects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Fat Projects 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 Fat Projects will offset losses from the drop in Fat Projects' 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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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