Correlation Between Bank Mandiri and Akerna Corp

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

Diversification Opportunities for Bank Mandiri and Akerna Corp

0.0

Correlation Coefficient

Bank Mandiri  Akerna Corp

Pay attention - limited upside

The 3 months correlation between Bank and Akerna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Akerna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akerna 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 Akerna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akerna Corp has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Akerna Corp go up and down completely randomly.

Pair Corralation between Bank Mandiri and Akerna Corp

If you would invest (100.00) in Akerna Corp on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Akerna Corp 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.  Akerna Corp

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. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Akerna Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akerna Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Akerna Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Bank Mandiri and Akerna Corp

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

The idea behind Bank Mandiri Persero and Akerna Corp 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.