Correlation Between Bank Mandiri and Viaderma
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Viaderma 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 Viaderma 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 Viaderma, you can compare the effects of market volatilities on Bank Mandiri and Viaderma 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 Viaderma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Viaderma.
Diversification Opportunities for Bank Mandiri and Viaderma
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Viaderma is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Viaderma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viaderma 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 Viaderma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viaderma has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Viaderma go up and down completely randomly.
Pair Corralation between Bank Mandiri and Viaderma
Assuming the 90 days horizon Bank Mandiri is expected to generate 13.99 times less return on investment than Viaderma. But when comparing it to its historical volatility, Bank Mandiri Persero is 6.08 times less risky than Viaderma. It trades about 0.02 of its potential returns per unit of risk. Viaderma is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.30 in Viaderma on September 12, 2024 and sell it today you would lose (0.36) from holding Viaderma or give up 27.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Viaderma
Performance |
| Timeline |
| Bank Mandiri Persero |
| Viaderma |
Bank Mandiri and Viaderma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Viaderma
The main advantage of trading using opposite Bank Mandiri and Viaderma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Viaderma 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 Viaderma will offset losses from the drop in Viaderma's long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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