Correlation Between Bank Mandiri and LIV Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and LIV Capital 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 LIV Capital 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 LIV Capital Acquisition, you can compare the effects of market volatilities on Bank Mandiri and LIV Capital 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 LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and LIV Capital.
Diversification Opportunities for Bank Mandiri and LIV Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and LIV is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and LIV Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIV Capital Acquisition 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 LIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIV Capital Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and LIV Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and LIV Capital
If you would invest 2.86 in LIV Capital Acquisition on September 3, 2024 and sell it today you would earn a total of 0.00 from holding LIV Capital Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. LIV Capital Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and LIV Capital
The main advantage of trading using opposite Bank Mandiri and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, LIV Capital 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 LIV Capital will offset losses from the drop in LIV Capital'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |