Correlation Between Bank Mandiri and Orefinders Resources
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Orefinders Resources 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 Orefinders Resources 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 Orefinders Resources, you can compare the effects of market volatilities on Bank Mandiri and Orefinders Resources 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 Orefinders Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Orefinders Resources.
Diversification Opportunities for Bank Mandiri and Orefinders Resources
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Orefinders is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Orefinders Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orefinders Resources 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 Orefinders Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orefinders Resources has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Orefinders Resources go up and down completely randomly.
Pair Corralation between Bank Mandiri and Orefinders Resources
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Orefinders Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.7 times less risky than Orefinders Resources. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Orefinders Resources is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4.32 in Orefinders Resources on September 1, 2024 and sell it today you would earn a total of 0.29 from holding Orefinders Resources or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Orefinders Resources
Performance |
| Timeline |
| Bank Mandiri Persero |
| Orefinders Resources |
Bank Mandiri and Orefinders Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Orefinders Resources
The main advantage of trading using opposite Bank Mandiri and Orefinders Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Orefinders Resources 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 Orefinders Resources will offset losses from the drop in Orefinders Resources' 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 |
| Orefinders Resources vs. Aurion Resources | Orefinders Resources vs. Rio2 Limited | Orefinders Resources vs. Palamina Corp | Orefinders Resources vs. BTU Metals 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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