Correlation Between Monitronics International and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Monitronics International 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 Monitronics International and Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monitronics International and Bank Mandiri Persero, you can compare the effects of market volatilities on Monitronics International 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 Monitronics International with a short position of Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monitronics International and Bank Mandiri.
Diversification Opportunities for Monitronics International and Bank Mandiri
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monitronics and Bank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Monitronics International 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 Monitronics International 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 Monitronics International 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 Monitronics International i.e., Monitronics International and Bank Mandiri go up and down completely randomly.
Pair Corralation between Monitronics International and Bank Mandiri
If you would invest 0.01 in Monitronics International on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Monitronics International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Monitronics International vs. Bank Mandiri Persero
Performance |
| Timeline |
| Monitronics International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bank Mandiri Persero |
Monitronics International and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monitronics International and Bank Mandiri
The main advantage of trading using opposite Monitronics International and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monitronics International 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.| Monitronics International vs. Black Hills | Monitronics International vs. NorthWestern | Monitronics International vs. Paysafe | Monitronics International vs. Analog Devices |
| Bank Mandiri vs. Lloyds Banking Group | Bank Mandiri vs. Western Alliance Bancorporation | Bank Mandiri vs. JAPAN POST BANK | Bank Mandiri vs. Piraeus Bank SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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