Correlation Between Bank Mandiri and SolarWindow Technologies
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and SolarWindow Technologies 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 SolarWindow Technologies 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 SolarWindow Technologies, you can compare the effects of market volatilities on Bank Mandiri and SolarWindow Technologies 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 SolarWindow Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and SolarWindow Technologies.
Diversification Opportunities for Bank Mandiri and SolarWindow Technologies
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and SolarWindow is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and SolarWindow Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarWindow Technologies 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 SolarWindow Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarWindow Technologies has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and SolarWindow Technologies go up and down completely randomly.
Pair Corralation between Bank Mandiri and SolarWindow Technologies
Assuming the 90 days horizon Bank Mandiri is expected to generate 7.52 times less return on investment than SolarWindow Technologies. But when comparing it to its historical volatility, Bank Mandiri Persero is 7.04 times less risky than SolarWindow Technologies. It trades about 0.06 of its potential returns per unit of risk. SolarWindow Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 32.00 in SolarWindow Technologies on November 4, 2024 and sell it today you would earn a total of 0.00 from holding SolarWindow Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. SolarWindow Technologies
Performance |
| Timeline |
| Bank Mandiri Persero |
| SolarWindow Technologies |
Bank Mandiri and SolarWindow Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and SolarWindow Technologies
The main advantage of trading using opposite Bank Mandiri and SolarWindow Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, SolarWindow Technologies 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 SolarWindow Technologies will offset losses from the drop in SolarWindow Technologies' long position.| Bank Mandiri vs. Bank Rakyat | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Nedbank Group | Bank Mandiri vs. Standard Bank Group |
| SolarWindow Technologies vs. Triad Pro Innovators | SolarWindow Technologies vs. Fortum Oyj ADR | SolarWindow Technologies vs. Fusion Fuel Green | SolarWindow Technologies vs. Clearway Energy Class |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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