Correlation Between Bank Mandiri and Creek Road
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Creek Road 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 Creek Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Creek Road Miners, you can compare the effects of market volatilities on Bank Mandiri and Creek Road 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 Creek Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Creek Road.
Diversification Opportunities for Bank Mandiri and Creek Road
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Creek is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Creek Road Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creek Road Miners 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 Persero are associated (or correlated) with Creek Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creek Road Miners has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Creek Road go up and down completely randomly.
Pair Corralation between Bank Mandiri and Creek Road
If you would invest 39.00 in Bank Mandiri Persero on September 25, 2024 and sell it today you would lose (3.00) from holding Bank Mandiri Persero or give up 7.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 0.8% |
Values | Daily Returns |
Bank Mandiri Persero vs. Creek Road Miners
Performance |
Timeline |
Bank Mandiri Persero |
Creek Road Miners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Creek Road Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Creek Road
The main advantage of trading using opposite Bank Mandiri and Creek Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Creek Road 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 Creek Road will offset losses from the drop in Creek Road's long position.Bank Mandiri vs. Banco Bradesco SA | Bank Mandiri vs. Itau Unibanco Banco | Bank Mandiri vs. Lloyds Banking Group | Bank Mandiri vs. Deutsche Bank AG |
Creek Road vs. Cryomass Technologies | Creek Road vs. Global Helium Corp | Creek Road vs. Optimi Health Corp | Creek Road vs. Draganfly |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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