Correlation Between Bank Mandiri and Sabre Gold
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Sabre Gold 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 Sabre Gold 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 Sabre Gold Mines, you can compare the effects of market volatilities on Bank Mandiri and Sabre Gold 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 Sabre Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Sabre Gold.
Diversification Opportunities for Bank Mandiri and Sabre Gold
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Sabre is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Sabre Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Gold Mines 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 Sabre Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Gold Mines has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Sabre Gold go up and down completely randomly.
Pair Corralation between Bank Mandiri and Sabre Gold
Assuming the 90 days horizon Bank Mandiri is expected to generate 3.85 times less return on investment than Sabre Gold. But when comparing it to its historical volatility, Bank Mandiri Persero is 4.04 times less risky than Sabre Gold. It trades about 0.04 of its potential returns per unit of risk. Sabre Gold Mines is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Sabre Gold Mines on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Sabre Gold Mines or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Sabre Gold Mines
Performance |
| Timeline |
| Bank Mandiri Persero |
| Sabre Gold Mines |
Bank Mandiri and Sabre Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Sabre Gold
The main advantage of trading using opposite Bank Mandiri and Sabre Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Sabre Gold 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 Sabre Gold will offset losses from the drop in Sabre Gold'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 |
| Sabre Gold vs. Telefonica Brasil SA | Sabre Gold vs. Vodafone Group PLC | Sabre Gold vs. Grupo Televisa SAB | Sabre Gold vs. America Movil SAB |
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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