Correlation Between Bank Mandiri and Sustainable Development
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Sustainable Development 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 Sustainable Development 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 Sustainable Development Acquisition, you can compare the effects of market volatilities on Bank Mandiri and Sustainable Development 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 Sustainable Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Sustainable Development.
Diversification Opportunities for Bank Mandiri and Sustainable Development
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Sustainable is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Sustainable Development Acquis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sustainable Development 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 Sustainable Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sustainable Development has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Sustainable Development go up and down completely randomly.
Pair Corralation between Bank Mandiri and Sustainable Development
If you would invest 1,547 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 17.00 from holding Bank Mandiri Persero or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Sustainable Development Acquis
Performance |
| Timeline |
| Bank Mandiri Persero |
| Sustainable Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Sustainable Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Sustainable Development
The main advantage of trading using opposite Bank Mandiri and Sustainable Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Sustainable Development 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 Sustainable Development will offset losses from the drop in Sustainable Development'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 |
| Sustainable Development vs. Welsbach Technology Metals | Sustainable Development vs. Thunder Bridge Capital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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