Correlation Between Bank Mandiri and Argosy Property
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Argosy Property 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 Argosy Property 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 Argosy Property Limited, you can compare the effects of market volatilities on Bank Mandiri and Argosy Property 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 Argosy Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Argosy Property.
Diversification Opportunities for Bank Mandiri and Argosy Property
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Argosy is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Argosy Property Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Property 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 Argosy Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Property has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Argosy Property go up and down completely randomly.
Pair Corralation between Bank Mandiri and Argosy Property
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Argosy Property. In addition to that, Bank Mandiri is 3.56 times more volatile than Argosy Property Limited. It trades about -0.05 of its total potential returns per unit of risk. Argosy Property Limited is currently generating about 0.21 per unit of volatility. If you would invest 67.00 in Argosy Property Limited on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Argosy Property Limited or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Argosy Property Limited
Performance |
| Timeline |
| Bank Mandiri Persero |
| Argosy Property |
Bank Mandiri and Argosy Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Argosy Property
The main advantage of trading using opposite Bank Mandiri and Argosy Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Argosy Property 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 Argosy Property will offset losses from the drop in Argosy Property'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 |
| Argosy Property vs. Avient Corp | Argosy Property vs. Hertz Global Holdings | Argosy Property vs. Luxfer Holdings PLC | Argosy Property vs. Avis Budget 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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