Correlation Between BANK MANDIRI and Varta AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between BANK MANDIRI and Varta AG, you can compare the effects of market volatilities on BANK MANDIRI and Varta AG 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 Varta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Varta AG.
Diversification Opportunities for BANK MANDIRI and Varta AG
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BANK and Varta is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Varta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varta AG 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 Varta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varta AG has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Varta AG go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Varta AG
Assuming the 90 days trading horizon BANK MANDIRI is expected to generate 0.16 times more return on investment than Varta AG. However, BANK MANDIRI is 6.43 times less risky than Varta AG. It trades about 0.0 of its potential returns per unit of risk. Varta AG is currently generating about -0.01 per unit of risk. If you would invest 31.00 in BANK MANDIRI on September 26, 2024 and sell it today you would lose (1.00) from holding BANK MANDIRI or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Varta AG
Performance |
| Timeline |
| BANK MANDIRI |
| Varta AG |
BANK MANDIRI and Varta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Varta AG
The main advantage of trading using opposite BANK MANDIRI and Varta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Varta AG 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 Varta AG will offset losses from the drop in Varta AG's long position.| BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Apple Inc | BANK MANDIRI vs. Microsoft | BANK MANDIRI vs. Microsoft |
| Varta AG vs. PT Bank Mandiri | Varta AG vs. BANK MANDIRI | Varta AG vs. BANK MANDIRI | Varta AG vs. BANK MANDIRI |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |