Correlation Between Perusahaan Perseroan and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan 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 Perusahaan Perseroan and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Perseroan PT and BANK MANDIRI, you can compare the effects of market volatilities on Perusahaan Perseroan 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 Perusahaan Perseroan with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and BANK MANDIRI.
Diversification Opportunities for Perusahaan Perseroan and BANK MANDIRI
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Perusahaan and BANK is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Perusahaan Perseroan 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 Perusahaan Perseroan PT 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 Perusahaan Perseroan i.e., Perusahaan Perseroan and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and BANK MANDIRI
Assuming the 90 days horizon Perusahaan Perseroan is expected to generate 9.89 times less return on investment than BANK MANDIRI. In addition to that, Perusahaan Perseroan is 1.47 times more volatile than BANK MANDIRI. It trades about 0.01 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about 0.09 per unit of volatility. If you would invest 33.00 in BANK MANDIRI on September 1, 2024 and sell it today you would earn a total of 6.00 from holding BANK MANDIRI or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. BANK MANDIRI
Performance |
| Timeline |
| Perusahaan Perseroan |
| BANK MANDIRI |
Perusahaan Perseroan and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and BANK MANDIRI
The main advantage of trading using opposite Perusahaan Perseroan and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan 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.| Perusahaan Perseroan vs. ATT Inc | Perusahaan Perseroan vs. Deutsche Telekom AG | Perusahaan Perseroan vs. Superior Plus Corp | Perusahaan Perseroan vs. NMI Holdings |
| BANK MANDIRI vs. SIVERS SEMICONDUCTORS AB | BANK MANDIRI vs. Darden Restaurants | BANK MANDIRI vs. Reliance Steel Aluminum | BANK MANDIRI vs. Q2M Managementberatung AG |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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