Correlation Between Bank Mandiri and Prospector Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Prospector Capital 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 Prospector Capital 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 Prospector Capital Corp, you can compare the effects of market volatilities on Bank Mandiri and Prospector Capital 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 Prospector Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Prospector Capital.
Diversification Opportunities for Bank Mandiri and Prospector Capital
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Prospector is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Prospector Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospector Capital 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 Prospector Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospector Capital Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Prospector Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and Prospector Capital
If you would invest 1,056 in Prospector Capital Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Prospector Capital Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Prospector Capital Corp
Performance |
| Timeline |
| Bank Mandiri Persero |
| Prospector Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Prospector Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Prospector Capital
The main advantage of trading using opposite Bank Mandiri and Prospector Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Prospector Capital 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 Prospector Capital will offset losses from the drop in Prospector Capital's long position.| Bank Mandiri vs. Israel Discount Bank | Bank Mandiri vs. Baraboo Bancorporation | Bank Mandiri vs. Danske Bank AS | Bank Mandiri vs. Jyske Bank AS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |