Correlation Between Bank Mandiri and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Thunder Bridge 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 Thunder Bridge 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 Thunder Bridge Capital, you can compare the effects of market volatilities on Bank Mandiri and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Thunder Bridge.
Diversification Opportunities for Bank Mandiri and Thunder Bridge
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Thunder is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Thunder Bridge go up and down completely randomly.
Pair Corralation between Bank Mandiri and Thunder Bridge
If you would invest 1,048 in Thunder Bridge Capital on September 16, 2024 and sell it today you would earn a total of 0.00 from holding Thunder Bridge Capital or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.54% |
Values | Daily Returns |
Bank Mandiri Persero vs. Thunder Bridge Capital
Performance |
Timeline |
Bank Mandiri Persero |
Thunder Bridge Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Thunder Bridge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Thunder Bridge
The main advantage of trading using opposite Bank Mandiri and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition | Bank Mandiri vs. Bondbloxx ETF Trust |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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