Correlation Between Bank Mandiri and 10X Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and 10X Capital 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 10X Capital 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 10X Capital Venture, you can compare the effects of market volatilities on Bank Mandiri and 10X Capital 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 10X Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and 10X Capital.
Diversification Opportunities for Bank Mandiri and 10X Capital
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and 10X is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and 10X Capital Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Capital Venture 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 10X Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Capital Venture has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and 10X Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and 10X Capital
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 2.1 times more return on investment than 10X Capital. However, Bank Mandiri is 2.1 times more volatile than 10X Capital Venture. It trades about 0.04 of its potential returns per unit of risk. 10X Capital Venture is currently generating about 0.03 per unit of risk. If you would invest 1,201 in Bank Mandiri Persero on September 3, 2024 and sell it today you would earn a total of 363.00 from holding Bank Mandiri Persero or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.2% |
| Values | Daily Returns |
Bank Mandiri Persero vs. 10X Capital Venture
Performance |
| Timeline |
| Bank Mandiri Persero |
| 10X Capital Venture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and 10X Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and 10X Capital
The main advantage of trading using opposite Bank Mandiri and 10X Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, 10X Capital 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 10X Capital will offset losses from the drop in 10X Capital'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 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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