Correlation Between Bank Mandiri and Hapag-Lloyd Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Hapag-Lloyd Aktiengesellscha 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 Hapag-Lloyd Aktiengesellscha 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 Hapag Lloyd Aktiengesellschaft, you can compare the effects of market volatilities on Bank Mandiri and Hapag-Lloyd Aktiengesellscha 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 Hapag-Lloyd Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Hapag-Lloyd Aktiengesellscha.
Diversification Opportunities for Bank Mandiri and Hapag-Lloyd Aktiengesellscha
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Hapag-Lloyd is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Hapag Lloyd Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag-Lloyd Aktiengesellscha 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 Hapag-Lloyd Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag-Lloyd Aktiengesellscha has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Hapag-Lloyd Aktiengesellscha go up and down completely randomly.
Pair Corralation between Bank Mandiri and Hapag-Lloyd Aktiengesellscha
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.71 times more return on investment than Hapag-Lloyd Aktiengesellscha. However, Bank Mandiri Persero is 1.41 times less risky than Hapag-Lloyd Aktiengesellscha. It trades about -0.16 of its potential returns per unit of risk. Hapag Lloyd Aktiengesellschaft is currently generating about -0.12 per unit of risk. If you would invest 1,749 in Bank Mandiri Persero on August 31, 2024 and sell it today you would lose (138.00) from holding Bank Mandiri Persero or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Hapag Lloyd Aktiengesellschaft
Performance |
| Timeline |
| Bank Mandiri Persero |
| Hapag-Lloyd Aktiengesellscha |
Bank Mandiri and Hapag-Lloyd Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Hapag-Lloyd Aktiengesellscha
The main advantage of trading using opposite Bank Mandiri and Hapag-Lloyd Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Hapag-Lloyd Aktiengesellscha 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 Hapag-Lloyd Aktiengesellscha will offset losses from the drop in Hapag-Lloyd Aktiengesellscha's long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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