Correlation Between Bank Mandiri and Chalice Brands
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Chalice Brands 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 Chalice Brands 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 Chalice Brands, you can compare the effects of market volatilities on Bank Mandiri and Chalice Brands 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 Chalice Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Chalice Brands.
Diversification Opportunities for Bank Mandiri and Chalice Brands
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Chalice is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Chalice Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Brands 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 Chalice Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Brands has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Chalice Brands go up and down completely randomly.
Pair Corralation between Bank Mandiri and Chalice Brands
Assuming the 90 days horizon Bank Mandiri Persero is expected to generate 0.29 times more return on investment than Chalice Brands. However, Bank Mandiri Persero is 3.44 times less risky than Chalice Brands. It trades about -0.04 of its potential returns per unit of risk. Chalice Brands is currently generating about -0.17 per unit of risk. If you would invest 47.00 in Bank Mandiri Persero on September 17, 2024 and sell it today you would lose (7.00) from holding Bank Mandiri Persero or give up 14.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Bank Mandiri Persero vs. Chalice Brands
Performance |
Timeline |
Bank Mandiri Persero |
Chalice Brands |
Bank Mandiri and Chalice Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Chalice Brands
The main advantage of trading using opposite Bank Mandiri and Chalice Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Chalice Brands 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 Chalice Brands will offset losses from the drop in Chalice Brands' long position.Bank Mandiri vs. Morningstar Unconstrained Allocation | Bank Mandiri vs. Bondbloxx ETF Trust | Bank Mandiri vs. Spring Valley Acquisition | Bank Mandiri vs. Bondbloxx ETF Trust |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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