Correlation Between Bank Mandiri and MYMD Old
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and MYMD Old 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 MYMD Old 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 MYMD Old, you can compare the effects of market volatilities on Bank Mandiri and MYMD Old 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 MYMD Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and MYMD Old.
Diversification Opportunities for Bank Mandiri and MYMD Old
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and MYMD is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and MYMD Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYMD Old 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 MYMD Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYMD Old has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and MYMD Old go up and down completely randomly.
Pair Corralation between Bank Mandiri and MYMD Old
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.24 times more return on investment than MYMD Old. However, Bank Mandiri Persero is 4.19 times less risky than MYMD Old. It trades about 0.01 of its potential returns per unit of risk. MYMD Old is currently generating about -0.12 per unit of risk. If you would invest 1,365 in Bank Mandiri Persero on October 16, 2024 and sell it today you would lose (17.00) from holding Bank Mandiri Persero or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.05% |
| Values | Daily Returns |
Bank Mandiri Persero vs. MYMD Old
Performance |
| Timeline |
| Bank Mandiri Persero |
| MYMD Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and MYMD Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and MYMD Old
The main advantage of trading using opposite Bank Mandiri and MYMD Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, MYMD Old 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 MYMD Old will offset losses from the drop in MYMD Old's long position.| Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Standard Bank Group | Bank Mandiri vs. Bank Central Asia | Bank Mandiri vs. PSB Holdings |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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