Correlation Between Bank Mandiri and Argo Group
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Argo Group 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 Argo Group 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 Argo Group International, you can compare the effects of market volatilities on Bank Mandiri and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Argo Group.
Diversification Opportunities for Bank Mandiri and Argo Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Argo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Argo Group go up and down completely randomly.
Pair Corralation between Bank Mandiri and Argo Group
If you would invest (100.00) in Argo Group International on December 3, 2024 and sell it today you would earn a total of 100.00 from holding Argo Group International or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bank Mandiri Persero vs. Argo Group International
Performance |
Timeline |
Bank Mandiri Persero |
Argo Group International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank Mandiri and Argo Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Argo Group
The main advantage of trading using opposite Bank Mandiri and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.Bank Mandiri vs. HDFC Bank Limited | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. China Merchants Bank | Bank Mandiri vs. Fifth Third Bancorp |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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