Correlation Between BANK MANDIRI and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and BANK MANDIRI 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 BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and BANK MANDIRI, you can compare the effects of market volatilities on BANK MANDIRI and BANK MANDIRI 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and BANK MANDIRI.
Diversification Opportunities for BANK MANDIRI and BANK MANDIRI
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BANK and BANK is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and BANK MANDIRI go up and down completely randomly.
Pair Corralation between BANK MANDIRI and BANK MANDIRI
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 1.16 times more return on investment than BANK MANDIRI. However, BANK MANDIRI is 1.16 times more volatile than BANK MANDIRI. It trades about -0.06 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.08 per unit of risk. If you would invest 38.00 in BANK MANDIRI on August 29, 2024 and sell it today you would lose (2.00) from holding BANK MANDIRI or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. BANK MANDIRI
Performance |
| Timeline |
| BANK MANDIRI |
| BANK MANDIRI |
BANK MANDIRI and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and BANK MANDIRI
The main advantage of trading using opposite BANK MANDIRI and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| BANK MANDIRI vs. REINET INVESTMENTS SCA | BANK MANDIRI vs. Perdoceo Education | BANK MANDIRI vs. SEI INVESTMENTS | BANK MANDIRI vs. DEVRY EDUCATION GRP |
| BANK MANDIRI vs. AGF Management Limited | BANK MANDIRI vs. FEMALE HEALTH | BANK MANDIRI vs. DiamondRock Hospitality | BANK MANDIRI vs. Waste Management |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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