Correlation Between Bank Mandiri and Glacier Media
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Glacier Media 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 Glacier Media 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 Glacier Media, you can compare the effects of market volatilities on Bank Mandiri and Glacier Media 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 Glacier Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Glacier Media.
Diversification Opportunities for Bank Mandiri and Glacier Media
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Glacier is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Glacier Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Media 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 Glacier Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Media has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Glacier Media go up and down completely randomly.
Pair Corralation between Bank Mandiri and Glacier Media
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Glacier Media. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 3.17 times less risky than Glacier Media. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Glacier Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Glacier Media on September 1, 2024 and sell it today you would earn a total of 5.50 from holding Glacier Media or generate 84.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Bank Mandiri Persero vs. Glacier Media
Performance |
Timeline |
Bank Mandiri Persero |
Glacier Media |
Bank Mandiri and Glacier Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Mandiri and Glacier Media
The main advantage of trading using opposite Bank Mandiri and Glacier Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Glacier Media 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 Glacier Media will offset losses from the drop in Glacier Media's long position.Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
Glacier Media vs. HUMANA INC | Glacier Media vs. Aquagold International | Glacier Media vs. Barloworld Ltd ADR | Glacier Media vs. Thrivent High Yield |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |