Correlation Between Bank Mandiri and SANUWAVE Health
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and SANUWAVE Health 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 SANUWAVE Health 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 SANUWAVE Health, you can compare the effects of market volatilities on Bank Mandiri and SANUWAVE Health 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 SANUWAVE Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and SANUWAVE Health.
Diversification Opportunities for Bank Mandiri and SANUWAVE Health
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and SANUWAVE is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and SANUWAVE Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANUWAVE Health 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 SANUWAVE Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANUWAVE Health has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and SANUWAVE Health go up and down completely randomly.
Pair Corralation between Bank Mandiri and SANUWAVE Health
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the SANUWAVE Health. In addition to that, Bank Mandiri is 1.23 times more volatile than SANUWAVE Health. It trades about -0.34 of its total potential returns per unit of risk. SANUWAVE Health is currently generating about 0.02 per unit of volatility. If you would invest 2,795 in SANUWAVE Health on November 29, 2024 and sell it today you would earn a total of 5.00 from holding SANUWAVE Health or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. SANUWAVE Health
Performance |
| Timeline |
| Bank Mandiri Persero |
| SANUWAVE Health |
Bank Mandiri and SANUWAVE Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and SANUWAVE Health
The main advantage of trading using opposite Bank Mandiri and SANUWAVE Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, SANUWAVE Health 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 SANUWAVE Health will offset losses from the drop in SANUWAVE Health'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 |
| SANUWAVE Health vs. Rafarma Pharmaceuticals | SANUWAVE Health vs. GulfSlope Energy | SANUWAVE Health vs. TSS, Common Stock |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |