Correlation Between Bank Mandiri and Voestalpine
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Voestalpine 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 Voestalpine 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 Voestalpine AG PK, you can compare the effects of market volatilities on Bank Mandiri and Voestalpine 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 Voestalpine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Voestalpine.
Diversification Opportunities for Bank Mandiri and Voestalpine
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Voestalpine is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Voestalpine AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voestalpine AG PK 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 Voestalpine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voestalpine AG PK has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Voestalpine go up and down completely randomly.
Pair Corralation between Bank Mandiri and Voestalpine
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.62 times more return on investment than Voestalpine. However, Bank Mandiri Persero is 1.61 times less risky than Voestalpine. It trades about 0.03 of its potential returns per unit of risk. Voestalpine AG PK is currently generating about 0.0 per unit of risk. If you would invest 1,210 in Bank Mandiri Persero on September 19, 2024 and sell it today you would earn a total of 284.00 from holding Bank Mandiri Persero or generate 23.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Voestalpine AG PK
Performance |
| Timeline |
| Bank Mandiri Persero |
| Voestalpine AG PK |
Bank Mandiri and Voestalpine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Voestalpine
The main advantage of trading using opposite Bank Mandiri and Voestalpine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Voestalpine 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 Voestalpine will offset losses from the drop in Voestalpine's long position.| Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition | Bank Mandiri vs. Bondbloxx ETF Trust |
| Voestalpine vs. ArcelorMittal SA ADR | Voestalpine vs. Gerdau SA ADR | Voestalpine vs. POSCO Holdings | Voestalpine vs. HUMANA INC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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