Correlation Between Bank Mandiri and Vinci SA
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Vinci SA 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 Vinci SA 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 Vinci SA ADR, you can compare the effects of market volatilities on Bank Mandiri and Vinci SA 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 Vinci SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Vinci SA.
Diversification Opportunities for Bank Mandiri and Vinci SA
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Vinci is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Vinci SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci SA ADR 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 Vinci SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci SA ADR has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Vinci SA go up and down completely randomly.
Pair Corralation between Bank Mandiri and Vinci SA
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 1.26 times more return on investment than Vinci SA. However, Bank Mandiri is 1.26 times more volatile than Vinci SA ADR. It trades about 0.06 of its potential returns per unit of risk. Vinci SA ADR is currently generating about -0.09 per unit of risk. If you would invest 1,440 in Bank Mandiri Persero on August 29, 2024 and sell it today you would earn a total of 210.00 from holding Bank Mandiri Persero or generate 14.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Vinci SA ADR
Performance |
| Timeline |
| Bank Mandiri Persero |
| Vinci SA ADR |
Bank Mandiri and Vinci SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Vinci SA
The main advantage of trading using opposite Bank Mandiri and Vinci SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Vinci SA 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 Vinci SA will offset losses from the drop in Vinci SA's long position.| Bank Mandiri vs. Israel Discount Bank | Bank Mandiri vs. Baraboo Bancorporation | Bank Mandiri vs. Danske Bank AS | Bank Mandiri vs. Jyske Bank AS |
| Vinci SA vs. Arcadis NV | Vinci SA vs. KBR Inc | Vinci SA vs. Orion Group Holdings | Vinci SA vs. Jacobs Solutions |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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