Correlation Between Bank Mandiri and New Ulm
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and New Ulm 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 New Ulm 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 New Ulm Telecom, you can compare the effects of market volatilities on Bank Mandiri and New Ulm 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 New Ulm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and New Ulm.
Diversification Opportunities for Bank Mandiri and New Ulm
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and New is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and New Ulm Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Ulm Telecom 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 New Ulm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Ulm Telecom has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and New Ulm go up and down completely randomly.
Pair Corralation between Bank Mandiri and New Ulm
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the New Ulm. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.87 times less risky than New Ulm. The pink sheet trades about -0.11 of its potential returns per unit of risk. The New Ulm Telecom is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 875.00 in New Ulm Telecom on September 1, 2024 and sell it today you would lose (25.00) from holding New Ulm Telecom or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. New Ulm Telecom
Performance |
| Timeline |
| Bank Mandiri Persero |
| New Ulm Telecom |
Bank Mandiri and New Ulm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and New Ulm
The main advantage of trading using opposite Bank Mandiri and New Ulm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, New Ulm 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 New Ulm will offset losses from the drop in New Ulm'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 |
| New Ulm vs. HUMANA INC | New Ulm vs. Aquagold International | New Ulm vs. Barloworld Ltd ADR | New Ulm vs. Thrivent High Yield |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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