Correlation Between Bank Mandiri and Koc Holdings
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Koc Holdings 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 Koc Holdings 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 Koc Holdings AS, you can compare the effects of market volatilities on Bank Mandiri and Koc Holdings 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 Koc Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Koc Holdings.
Diversification Opportunities for Bank Mandiri and Koc Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Koc is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Koc Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holdings AS 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 Koc Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holdings AS has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Koc Holdings go up and down completely randomly.
Pair Corralation between Bank Mandiri and Koc Holdings
If you would invest (100.00) in Koc Holdings AS on November 22, 2024 and sell it today you would earn a total of 100.00 from holding Koc Holdings AS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Koc Holdings AS
Performance |
| Timeline |
| Bank Mandiri Persero |
| Koc Holdings AS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Mandiri and Koc Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Koc Holdings
The main advantage of trading using opposite Bank Mandiri and Koc Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Koc Holdings 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 Koc Holdings will offset losses from the drop in Koc Holdings' long position.| Bank Mandiri vs. Banco Bradesco SA | Bank Mandiri vs. Itau Unibanco Banco | Bank Mandiri vs. Lloyds Banking Group | Bank Mandiri vs. Deutsche Bank AG |
| Koc Holdings vs. Akbank Turk Anonim | Koc Holdings vs. Turkiye Garanti Bankasi | Koc Holdings vs. Astra International Tbk | Koc Holdings vs. Bank Mandiri Persero |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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