Correlation Between Bank Mandiri and Fortitude Gold
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Fortitude Gold 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 Fortitude Gold 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 Fortitude Gold Corp, you can compare the effects of market volatilities on Bank Mandiri and Fortitude Gold 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 Fortitude Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Fortitude Gold.
Diversification Opportunities for Bank Mandiri and Fortitude Gold
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Fortitude is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Fortitude Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortitude Gold 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 Fortitude Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortitude Gold Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Fortitude Gold go up and down completely randomly.
Pair Corralation between Bank Mandiri and Fortitude Gold
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.82 times more return on investment than Fortitude Gold. However, Bank Mandiri Persero is 1.22 times less risky than Fortitude Gold. It trades about 0.02 of its potential returns per unit of risk. Fortitude Gold Corp is currently generating about 0.02 per unit of risk. If you would invest 1,441 in Bank Mandiri Persero on August 25, 2024 and sell it today you would earn a total of 102.00 from holding Bank Mandiri Persero or generate 7.08% 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. Fortitude Gold Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Fortitude Gold Corp |
Bank Mandiri and Fortitude Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Fortitude Gold
The main advantage of trading using opposite Bank Mandiri and Fortitude Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Fortitude Gold 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 Fortitude Gold will offset losses from the drop in Fortitude Gold's long position.| Bank Mandiri vs. Standard Bank Group | Bank Mandiri vs. PSB Holdings | Bank Mandiri vs. United Overseas Bank | Bank Mandiri vs. Turkiye Garanti Bankasi |
| Fortitude Gold vs. Generationome Properties | Fortitude Gold vs. Gold Resource | Fortitude Gold vs. PermRock Royalty Trust | Fortitude Gold vs. Ellington Residential Mortgage |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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