Correlation Between Bank Mandiri and THC Biomed
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and THC Biomed 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 THC Biomed 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 THC Biomed Intl, you can compare the effects of market volatilities on Bank Mandiri and THC Biomed 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 THC Biomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and THC Biomed.
Diversification Opportunities for Bank Mandiri and THC Biomed
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and THC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and THC Biomed Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THC Biomed Intl 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 THC Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THC Biomed Intl has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and THC Biomed go up and down completely randomly.
Pair Corralation between Bank Mandiri and THC Biomed
If you would invest 0.10 in THC Biomed Intl on September 1, 2024 and sell it today you would earn a total of 0.00 from holding THC Biomed Intl or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. THC Biomed Intl
Performance |
| Timeline |
| Bank Mandiri Persero |
| THC Biomed Intl |
Bank Mandiri and THC Biomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and THC Biomed
The main advantage of trading using opposite Bank Mandiri and THC Biomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, THC Biomed 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 THC Biomed will offset losses from the drop in THC Biomed's long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| THC Biomed vs. Brainsway | THC Biomed vs. Venus Concept | THC Biomed vs. Tactile Systems Technology | THC Biomed vs. Icecure Medical |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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