Correlation Between Bank Mandiri and Vendetta Mining
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Vendetta Mining 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 Vendetta Mining 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 Vendetta Mining Corp, you can compare the effects of market volatilities on Bank Mandiri and Vendetta Mining 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 Vendetta Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Vendetta Mining.
Diversification Opportunities for Bank Mandiri and Vendetta Mining
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Vendetta is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Vendetta Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vendetta Mining Corp 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 Vendetta Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vendetta Mining Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Vendetta Mining go up and down completely randomly.
Pair Corralation between Bank Mandiri and Vendetta Mining
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Vendetta Mining. In addition to that, Bank Mandiri is 1.03 times more volatile than Vendetta Mining Corp. It trades about -0.06 of its total potential returns per unit of risk. Vendetta Mining Corp is currently generating about 0.03 per unit of volatility. If you would invest 1.25 in Vendetta Mining Corp on December 2, 2024 and sell it today you would earn a total of 0.00 from holding Vendetta Mining Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Bank Mandiri Persero vs. Vendetta Mining Corp
Performance |
Timeline |
Bank Mandiri Persero |
Vendetta Mining Corp |
Bank Mandiri and Vendetta Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Vendetta Mining
The main advantage of trading using opposite Bank Mandiri and Vendetta Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Vendetta Mining 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 Vendetta Mining will offset losses from the drop in Vendetta Mining'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 |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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