Correlation Between Bank Mandiri and Middlebury National
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Middlebury National 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 Middlebury National 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 Middlebury National, you can compare the effects of market volatilities on Bank Mandiri and Middlebury National 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 Middlebury National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Middlebury National.
Diversification Opportunities for Bank Mandiri and Middlebury National
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Middlebury is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Middlebury National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Middlebury National 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 Middlebury National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Middlebury National has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Middlebury National go up and down completely randomly.
Pair Corralation between Bank Mandiri and Middlebury National
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Middlebury National. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 1.11 times less risky than Middlebury National. The pink sheet trades about -0.32 of its potential returns per unit of risk. The Middlebury National is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,025 in Middlebury National on September 26, 2024 and sell it today you would earn a total of 475.00 from holding Middlebury National or generate 15.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Mandiri Persero vs. Middlebury National
Performance |
Timeline |
Bank Mandiri Persero |
Middlebury National |
Bank Mandiri and Middlebury National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Middlebury National
The main advantage of trading using opposite Bank Mandiri and Middlebury National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Middlebury National 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 Middlebury National will offset losses from the drop in Middlebury National's long position.Bank Mandiri vs. Banco Bradesco SA | Bank Mandiri vs. Itau Unibanco Banco | Bank Mandiri vs. Deutsche Bank AG | Bank Mandiri vs. Banco Santander Brasil |
Middlebury National vs. Banco Bradesco SA | Middlebury National vs. Itau Unibanco Banco | Middlebury National vs. Deutsche Bank AG | Middlebury National vs. Banco Santander Brasil |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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