Correlation Between Bank Mandiri and LF Capital
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and LF Capital 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 LF Capital 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 LF Capital Acquisition, you can compare the effects of market volatilities on Bank Mandiri and LF Capital 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 LF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and LF Capital.
Diversification Opportunities for Bank Mandiri and LF Capital
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and LFAC is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and LF Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LF Capital 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 LF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LF Capital Acquisition has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and LF Capital go up and down completely randomly.
Pair Corralation between Bank Mandiri and LF Capital
If you would invest 1,073 in LF Capital Acquisition on September 16, 2024 and sell it today you would earn a total of 0.00 from holding LF Capital Acquisition or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 1.54% |
Values | Daily Returns |
Bank Mandiri Persero vs. LF Capital Acquisition
Performance |
Timeline |
Bank Mandiri Persero |
LF Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and LF Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and LF Capital
The main advantage of trading using opposite Bank Mandiri and LF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, LF Capital 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 LF Capital will offset losses from the drop in LF Capital's 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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