Correlation Between BANK MANDIRI and Mastercard
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Mastercard 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 Mastercard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Mastercard, you can compare the effects of market volatilities on BANK MANDIRI and Mastercard 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 Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Mastercard.
Diversification Opportunities for BANK MANDIRI and Mastercard
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Mastercard is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard 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 are associated (or correlated) with Mastercard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastercard has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Mastercard go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Mastercard
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Mastercard. In addition to that, BANK MANDIRI is 1.86 times more volatile than Mastercard. It trades about -0.02 of its total potential returns per unit of risk. Mastercard is currently generating about 0.18 per unit of volatility. If you would invest 47,080 in Mastercard on August 28, 2024 and sell it today you would earn a total of 2,865 from holding Mastercard or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BANK MANDIRI vs. Mastercard
Performance |
| Timeline |
| BANK MANDIRI |
| Mastercard |
BANK MANDIRI and Mastercard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Mastercard
The main advantage of trading using opposite BANK MANDIRI and Mastercard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Mastercard 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 Mastercard will offset losses from the drop in Mastercard's long position.| BANK MANDIRI vs. RETAIL FOOD GROUP | BANK MANDIRI vs. CANON MARKETING JP | BANK MANDIRI vs. Perma Fix Environmental Services | BANK MANDIRI vs. Globe Trade Centre |
| Mastercard vs. Superior Plus Corp | Mastercard vs. NMI Holdings | Mastercard vs. Origin Agritech | Mastercard vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |