Correlation Between Wahana Ottomitra and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Wahana Ottomitra and Bank Mandiri 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 Wahana Ottomitra and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Ottomitra Multiartha and Bank Mandiri Persero, you can compare the effects of market volatilities on Wahana Ottomitra and Bank Mandiri 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 Wahana Ottomitra with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Ottomitra and Bank Mandiri.
Diversification Opportunities for Wahana Ottomitra and Bank Mandiri
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wahana and Bank is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Ottomitra Multiartha and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero and Wahana Ottomitra 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 Wahana Ottomitra Multiartha are associated (or correlated) with Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of Wahana Ottomitra i.e., Wahana Ottomitra and Bank Mandiri go up and down completely randomly.
Pair Corralation between Wahana Ottomitra and Bank Mandiri
Assuming the 90 days trading horizon Wahana Ottomitra Multiartha is expected to generate 0.51 times more return on investment than Bank Mandiri. However, Wahana Ottomitra Multiartha is 1.95 times less risky than Bank Mandiri. It trades about -0.03 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about -0.16 per unit of risk. If you would invest 36,200 in Wahana Ottomitra Multiartha on September 15, 2024 and sell it today you would lose (800.00) from holding Wahana Ottomitra Multiartha or give up 2.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Wahana Ottomitra Multiartha vs. Bank Mandiri Persero
Performance |
Timeline |
Wahana Ottomitra Mul |
Bank Mandiri Persero |
Wahana Ottomitra and Bank Mandiri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wahana Ottomitra and Bank Mandiri
The main advantage of trading using opposite Wahana Ottomitra and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Ottomitra position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.Wahana Ottomitra vs. Paninvest Tbk | Wahana Ottomitra vs. Maskapai Reasuransi Indonesia | Wahana Ottomitra vs. Panin Sekuritas Tbk |
Bank Mandiri vs. Paninvest Tbk | Bank Mandiri vs. Maskapai Reasuransi Indonesia | Bank Mandiri vs. Panin Sekuritas Tbk | Bank Mandiri vs. Wahana Ottomitra Multiartha |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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