Correlation Between Bank Mandiri and RBC Bearings
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and RBC Bearings 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 RBC Bearings 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 RBC Bearings, you can compare the effects of market volatilities on Bank Mandiri and RBC Bearings 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 RBC Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and RBC Bearings.
Diversification Opportunities for Bank Mandiri and RBC Bearings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and RBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and RBC Bearings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Bearings 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 RBC Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Bearings has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and RBC Bearings go up and down completely randomly.
Pair Corralation between Bank Mandiri and RBC Bearings
If you would invest (100.00) in RBC Bearings on November 29, 2024 and sell it today you would earn a total of 100.00 from holding RBC Bearings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. RBC Bearings
Performance |
| Timeline |
| Bank Mandiri Persero |
| RBC Bearings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Mandiri and RBC Bearings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and RBC Bearings
The main advantage of trading using opposite Bank Mandiri and RBC Bearings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, RBC Bearings 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 RBC Bearings will offset losses from the drop in RBC Bearings' long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
| RBC Bearings vs. Old National Bancorp | RBC Bearings vs. Pinnacle Financial Partners | RBC Bearings vs. CIT Group Preferred | RBC Bearings vs. Texas Capital Bancshares |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |