Correlation Between Bank Mandiri and Ramaco Resources,

Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Ramaco Resources, 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 Ramaco Resources, 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 Ramaco Resources, , you can compare the effects of market volatilities on Bank Mandiri and Ramaco Resources, 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 Ramaco Resources,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Ramaco Resources,.

Diversification Opportunities for Bank Mandiri and Ramaco Resources,

-0.15

Correlation Coefficient

Bank Mandiri  Ramaco Resources,

Good diversification

The 3 months correlation between Bank and Ramaco is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Ramaco Resources, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramaco Resources, 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 Ramaco Resources,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramaco Resources, has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Ramaco Resources, go up and down completely randomly.

Pair Corralation between Bank Mandiri and Ramaco Resources,

Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Ramaco Resources,. In addition to that, Bank Mandiri is 19.84 times more volatile than Ramaco Resources, . It trades about 0.0 of its total potential returns per unit of risk. Ramaco Resources, is currently generating about 0.08 per unit of volatility. If you would invest  2,525  in Ramaco Resources, on December 28, 2024 and sell it today you would earn a total of  37.50  from holding Ramaco Resources, or generate 1.49% 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.  Ramaco Resources,

Bank Mandiri Persero

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bank Mandiri Persero has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bank Mandiri is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ramaco Resources,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ramaco Resources, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Ramaco Resources, is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bank Mandiri and Ramaco Resources,

The main advantage of trading using opposite Bank Mandiri and Ramaco Resources, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Ramaco Resources, 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 Ramaco Resources, will offset losses from the drop in Ramaco Resources,'s long position.

The idea behind Bank Mandiri Persero and Ramaco Resources, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.