Correlation Between Bank Mandiri and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and RCS MediaGroup 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 RCS MediaGroup 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 RCS MediaGroup SpA, you can compare the effects of market volatilities on Bank Mandiri and RCS MediaGroup 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 RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and RCS MediaGroup.
Diversification Opportunities for Bank Mandiri and RCS MediaGroup
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and RCS is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA 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 RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Bank Mandiri and RCS MediaGroup
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the RCS MediaGroup. In addition to that, Bank Mandiri is 1.06 times more volatile than RCS MediaGroup SpA. It trades about -0.03 of its total potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.09 per unit of volatility. If you would invest 69.00 in RCS MediaGroup SpA on November 3, 2024 and sell it today you would earn a total of 23.00 from holding RCS MediaGroup SpA or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.16% |
| Values | Daily Returns |
Bank Mandiri Persero vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Bank Mandiri Persero |
| RCS MediaGroup SpA |
Bank Mandiri and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and RCS MediaGroup
The main advantage of trading using opposite Bank Mandiri and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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