Correlation Between Bank Mandiri and Nova Vision
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Nova Vision 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 Nova Vision 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 Nova Vision Acquisition, you can compare the effects of market volatilities on Bank Mandiri and Nova Vision 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 Nova Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Nova Vision.
Diversification Opportunities for Bank Mandiri and Nova Vision
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Nova is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Nova Vision Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Vision 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 Nova Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Vision Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Nova Vision go up and down completely randomly.
Pair Corralation between Bank Mandiri and Nova Vision
Assuming the 90 days horizon Bank Mandiri is expected to generate 418.91 times less return on investment than Nova Vision. But when comparing it to its historical volatility, Bank Mandiri Persero is 97.08 times less risky than Nova Vision. It trades about 0.04 of its potential returns per unit of risk. Nova Vision Acquisition is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Nova Vision Acquisition on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Nova Vision Acquisition or generate 109.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.24% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Nova Vision Acquisition
Performance |
| Timeline |
| Bank Mandiri Persero |
| Nova Vision Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Bank Mandiri and Nova Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Nova Vision
The main advantage of trading using opposite Bank Mandiri and Nova Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Nova Vision 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 Nova Vision will offset losses from the drop in Nova Vision's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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