Correlation Between Bank Mandiri and Adamis Pharma
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Adamis Pharma 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 Adamis Pharma 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 Adamis Pharma, you can compare the effects of market volatilities on Bank Mandiri and Adamis Pharma 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 Adamis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Adamis Pharma.
Diversification Opportunities for Bank Mandiri and Adamis Pharma
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Adamis is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Adamis Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adamis Pharma 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 Adamis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adamis Pharma has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Adamis Pharma go up and down completely randomly.
Pair Corralation between Bank Mandiri and Adamis Pharma
If you would invest 174.00 in Adamis Pharma on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Adamis Pharma or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 1.56% |
Values | Daily Returns |
Bank Mandiri Persero vs. Adamis Pharma
Performance |
Timeline |
Bank Mandiri Persero |
Adamis Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Adamis Pharma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Adamis Pharma
The main advantage of trading using opposite Bank Mandiri and Adamis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Adamis Pharma 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 Adamis Pharma will offset losses from the drop in Adamis Pharma's long position.Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Uwharrie Capital Corp |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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