Correlation Between Bank Mandiri and Hanover House
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Hanover House 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 Hanover House 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 Hanover House, you can compare the effects of market volatilities on Bank Mandiri and Hanover House 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 Hanover House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Hanover House.
Diversification Opportunities for Bank Mandiri and Hanover House
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Hanover is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Hanover House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover House 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 Hanover House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanover House has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Hanover House go up and down completely randomly.
Pair Corralation between Bank Mandiri and Hanover House
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Hanover House. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 4.69 times less risky than Hanover House. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Hanover House is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.63 in Hanover House on September 1, 2024 and sell it today you would earn a total of 0.17 from holding Hanover House or generate 26.98% 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. Hanover House
Performance |
| Timeline |
| Bank Mandiri Persero |
| Hanover House |
Bank Mandiri and Hanover House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Hanover House
The main advantage of trading using opposite Bank Mandiri and Hanover House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Hanover House 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 Hanover House will offset losses from the drop in Hanover House's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Hanover House vs. Sanwire | Hanover House vs. SNM Gobal Holdings | Hanover House vs. All For One | Hanover House vs. Ggtoor Inc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |