Correlation Between Bank Mandiri and TVA
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and TVA 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 TVA 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 TVA Group, you can compare the effects of market volatilities on Bank Mandiri and TVA 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 TVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and TVA.
Diversification Opportunities for Bank Mandiri and TVA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and TVA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and TVA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TVA Group 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 TVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TVA Group has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and TVA go up and down completely randomly.
Pair Corralation between Bank Mandiri and TVA
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 2.41 times more return on investment than TVA. However, Bank Mandiri is 2.41 times more volatile than TVA Group. It trades about 0.02 of its potential returns per unit of risk. TVA Group is currently generating about -0.07 per unit of risk. If you would invest 1,525 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 86.00 from holding Bank Mandiri Persero or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Bank Mandiri Persero vs. TVA Group
Performance |
| Timeline |
| Bank Mandiri Persero |
| TVA Group |
Bank Mandiri and TVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and TVA
The main advantage of trading using opposite Bank Mandiri and TVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, TVA 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 TVA will offset losses from the drop in TVA'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 |
| TVA vs. HUMANA INC | TVA vs. Aquagold International | TVA vs. Barloworld Ltd ADR | TVA vs. Thrivent High Yield |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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