Correlation Between Bank Mandiri and Onex Corp
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Onex Corp 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 Onex Corp 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 Onex Corp, you can compare the effects of market volatilities on Bank Mandiri and Onex Corp 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 Onex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Onex Corp.
Diversification Opportunities for Bank Mandiri and Onex Corp
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Onex is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Onex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onex Corp 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 Onex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onex Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Onex Corp go up and down completely randomly.
Pair Corralation between Bank Mandiri and Onex Corp
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Onex Corp. In addition to that, Bank Mandiri is 1.11 times more volatile than Onex Corp. It trades about -0.11 of its total potential returns per unit of risk. Onex Corp is currently generating about 0.29 per unit of volatility. If you would invest 7,235 in Onex Corp on September 1, 2024 and sell it today you would earn a total of 912.00 from holding Onex Corp or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Onex Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Onex Corp |
Bank Mandiri and Onex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Onex Corp
The main advantage of trading using opposite Bank Mandiri and Onex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Onex Corp 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 Onex Corp will offset losses from the drop in Onex Corp'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 |
| Onex Corp vs. Cohen Steers | Onex Corp vs. Artisan Partners Asset | Onex Corp vs. Principal Financial Group | Onex Corp vs. Invesco Plc |
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.
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