Correlation Between First Bankers and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both First Bankers 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 First Bankers and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Bankers Trustshares and Bank Mandiri Persero, you can compare the effects of market volatilities on First Bankers 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 First Bankers with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Bankers and Bank Mandiri.
Diversification Opportunities for First Bankers and Bank Mandiri
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Bank is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding First Bankers Trustshares and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and First Bankers 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 First Bankers Trustshares 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 Persero has no effect on the direction of First Bankers i.e., First Bankers and Bank Mandiri go up and down completely randomly.
Pair Corralation between First Bankers and Bank Mandiri
Given the investment horizon of 90 days First Bankers Trustshares is expected to generate 0.29 times more return on investment than Bank Mandiri. However, First Bankers Trustshares is 3.44 times less risky than Bank Mandiri. It trades about 0.08 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.1 per unit of risk. If you would invest 1,600 in First Bankers Trustshares on October 4, 2024 and sell it today you would earn a total of 77.00 from holding First Bankers Trustshares or generate 4.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.16% |
Values | Daily Returns |
First Bankers Trustshares vs. Bank Mandiri Persero
Performance |
Timeline |
First Bankers Trustshares |
Bank Mandiri Persero |
First Bankers and Bank Mandiri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Bankers and Bank Mandiri
The main advantage of trading using opposite First Bankers and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Bankers 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.First Bankers vs. Greenville Federal Financial | First Bankers vs. First Ottawa Bancshares | First Bankers vs. Coastal Carolina Bancshares | First Bankers vs. Citizens Bancorp Investment |
Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
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.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |