Correlation Between Bank Mandiri and FFW
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and FFW 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 FFW 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 FFW Corporation, you can compare the effects of market volatilities on Bank Mandiri and FFW 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 FFW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and FFW.
Diversification Opportunities for Bank Mandiri and FFW
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and FFW is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and FFW Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFW Corporation 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 FFW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFW Corporation has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and FFW go up and down completely randomly.
Pair Corralation between Bank Mandiri and FFW
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the FFW. In addition to that, Bank Mandiri is 6.95 times more volatile than FFW Corporation. It trades about -0.03 of its total potential returns per unit of risk. FFW Corporation is currently generating about 0.02 per unit of volatility. If you would invest 3,970 in FFW Corporation on December 26, 2024 and sell it today you would earn a total of 30.00 from holding FFW Corporation or generate 0.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Mandiri Persero vs. FFW Corp.
Performance |
Timeline |
Bank Mandiri Persero |
FFW Corporation |
Bank Mandiri and FFW Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and FFW
The main advantage of trading using opposite Bank Mandiri and FFW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, FFW 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 FFW will offset losses from the drop in FFW's long position.Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
FFW vs. First Farmers Financial | FFW vs. Farmers Merchants Bancorp | FFW vs. Lakeland Financial | FFW vs. Eagle Financial Services |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |