Correlation Between Visa and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and BANK MANDIRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and BANK MANDIRI, you can compare the effects of market volatilities on Visa 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 Visa with a short position of BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and BANK MANDIRI.
Diversification Opportunities for Visa and BANK MANDIRI
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and BANK is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI and Visa 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 Visa Class A 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 Visa i.e., Visa and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Visa and BANK MANDIRI
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.43 times more return on investment than BANK MANDIRI. However, Visa Class A is 2.32 times less risky than BANK MANDIRI. It trades about 0.1 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.03 per unit of risk. If you would invest 22,047 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 9,461 from holding Visa Class A or generate 42.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.16% |
| Values | Daily Returns |
Visa Class A vs. BANK MANDIRI
Performance |
| Timeline |
| Visa Class A |
| BANK MANDIRI |
Visa and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and BANK MANDIRI
The main advantage of trading using opposite Visa and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| BANK MANDIRI vs. GRUPO CARSO A1 | BANK MANDIRI vs. SBA Communications Corp | BANK MANDIRI vs. Singapore Telecommunications Limited | BANK MANDIRI vs. Liberty Broadband |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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