Correlation Between Bank Mandiri and TG Venture
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and TG Venture 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 TG Venture 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 TG Venture Acquisition, you can compare the effects of market volatilities on Bank Mandiri and TG Venture 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 TG Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and TG Venture.
Diversification Opportunities for Bank Mandiri and TG Venture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and TGVCW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and TG Venture Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Venture Acquisition 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 TG Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Venture Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and TG Venture go up and down completely randomly.
Pair Corralation between Bank Mandiri and TG Venture
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.29 times more return on investment than TG Venture. However, Bank Mandiri Persero is 3.43 times less risky than TG Venture. It trades about 0.03 of its potential returns per unit of risk. TG Venture Acquisition is currently generating about -0.08 per unit of risk. If you would invest 1,207 in Bank Mandiri Persero on September 14, 2024 and sell it today you would earn a total of 315.00 from holding Bank Mandiri Persero or generate 26.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 28.48% |
Values | Daily Returns |
Bank Mandiri Persero vs. TG Venture Acquisition
Performance |
Timeline |
Bank Mandiri Persero |
TG Venture Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and TG Venture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and TG Venture
The main advantage of trading using opposite Bank Mandiri and TG Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, TG Venture 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 TG Venture will offset losses from the drop in TG Venture's long position.Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition |
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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