Correlation Between Bank Mandiri and Hexo Corp
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Hexo Corp 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 Hexo Corp 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 Hexo Corp, you can compare the effects of market volatilities on Bank Mandiri and Hexo Corp 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 Hexo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Hexo Corp.
Diversification Opportunities for Bank Mandiri and Hexo Corp
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Hexo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Hexo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexo 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 Hexo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexo Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Hexo Corp go up and down completely randomly.
Pair Corralation between Bank Mandiri and Hexo Corp
If you would invest 1,482 in Bank Mandiri Persero on September 2, 2024 and sell it today you would earn a total of 78.00 from holding Bank Mandiri Persero or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Hexo Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Hexo Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Hexo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Hexo Corp
The main advantage of trading using opposite Bank Mandiri and Hexo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Hexo Corp 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 Hexo Corp will offset losses from the drop in Hexo Corp's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
| Hexo Corp vs. Aurora Cannabis | Hexo Corp vs. Canopy Growth Corp | Hexo Corp vs. Curaleaf Holdings | Hexo Corp vs. OrganiGram Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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